Investigations continue into collapsed Bleiker’s Smoke House

Investigations are continuing into alleged food fraud by a company founded in the Harrogate district.

The Food Standards Agency has confirmed it is still looking into allegations made against Bleiker’s last year.

The company, established in 1993 and previously based at Glasshouses Mill in Nidderdale, fell into administration in April 2022 before the investigation was announced just days later in May.

This week, Andrew Quinn, deputy head of the national food crime unit at the Food Standards Agency, told the Stray Ferret:

“The FSA’s national food crime unit is investigating alleged food fraud and how a smokehouse supplied a large supermarket retailer with smoked salmon labelled as fresh and Scottish when it was allegedly sourced frozen from Norway.

“We regularly engage with industry to share intelligence, tackling food fraud to protect the consumer.  The national food crime unit acted on intelligence it received which resulted in one arrest being made and three further suspects were interviewed voluntarily under caution.

“It is vitally important that we ensure food is safe and what it says it is, and that consumers and food businesses are confident in the authenticity of food they are buying.”

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Meanwhile, the latest update from administrators shows the purchaser has not paid the agreed amount for the business’ assets.

The unnamed purchaser had agreed to pay £225,000 for stock, as well as fixtures and fittings, the business name and website, and other assets, in a sale which completed in December.

However, the administrators reported the purchaser could not pay the full sum at that time. Having agreed a schedule of £5,000 a month, they have since defaulted and administrators are liaising with solicitors to consider their next steps.

Administrators have also sought legal advice from Leeds-based Schoosmiths solicitors after analysing Bleikers’ bank statement activity.

The report said:

“We have carried out an analysis of the company’s bank statement activity and reviewed the accounting information available.

“We have sought feedback from our solicitors (Shoosmiths) with regards to certain matters identified during the investigation.”

Companies ‘unlikely’ to receive pay-out from Bleikers Smoke House, say administrators

Administrators dealing with the collapse of a food company founded in the Harrogate district have said it is “unlikely” its 108 unsecured creditors will receive any of the money they are owed.

Bleikers Smoke House Ltd fell into administration in April, when it was also revealed that the company was being investigated for possible food fraud.

Now, administrator FRP Advisory Ltd has revealed a growth in the price of raw materials and difficulty in finding temporary staff at Christmas put “pressure” on the company. The latest report said:

“In late March 2022, the company’s biggest customer (approx 50% of sales) notified the company of concerns regarding the provenance of goods supplied and withdrew its products from sale in its stores, ceasing all orders.

“Despite an ongoing dialogue and a number of audits being undertaken by the customer and its agents, no resolution could be reached.

“A confidential settlement was subsequently reached with the customer on April 26, 2022, which ended the relationship.

“The sudden loss of this customer’s business, combined with the already weakened financial position meant the company was no longer viable.”

The latest update reveals a sale of the company, founded in 1993 at Glasshouses Mill, was attempted in April but a buyer was not found. After the company entered administration, there were two parties interested in buying it, but they pulled out when news of the Food Standards Agency’s investigation emerged.

However, a sale to Sixto Strategic Sourcing LLC for a total price of £300,000 has since been agreed, and could see production restarted from Bleikers’ most recent home at Leeming Bar.

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As well as negotiating the sale, administrators reported they had secured the return of the company’s trademark and branding rights from a company owned by the children of Bleikers’ directors, Charles and Annabel Andrew.

The rights had been transferred within the last 12 months but were returned in order to facilitate a sale of the business, the report said.

Of the company’s 86 members of staff, just three have been retained on a self-employed basis to assist with specialist knowledge. A food hygiene specialist has been appointed to liaise with the environmental health office.

Administrators said the prospect of any of the company’s 108 outstanding creditors receiving any payment is “unlikely”.

Meanwhile, the Food Standards Agency (FSA) said it continues to investigate Bleikers Smoke House over allegations of food fraud.