Tribunal report lays bare Farmison’s dispute with founderRipon firm ordered to pay founder £115,000 for unfair dismissalRipon firm Farmison to trade again after buyout completed

The Ripon-based online meat retailer Farmison & Co is to re-commence trading.

A consortium led by Andy Clarke, the former chief executive of Asda, today acquired the company from administration for an undisclosed sum.

John Pallagi who co-founded the business with Lee Simmons in 2011, is not listed as a consortium member.

The consortium said in a statement:

“Over the course of the coming weeks, the consortium intends to recommence operations at Farmison’s production facility in Ripon and return the business to being an important employer in the city.

“The consortium will work with the whole leadership team to firstly stabilise the company after a difficult year and then devise and implement a growth strategy.”

It is not known how many staff will be hired but a spokesman said a “substantial” number of positions will be created.

Mr Clarke, who was chief executive officer of Leeds-based Asda from 2010-16 will become executive chairman of Farmison.

Acknowledging the vision of Mr Pallagi, he said:

“While unable to navigate the economic difficulties of the last 12 months, John’s ‘eat better meat’ mission that sits at the heart of Farmison’s business, is one we believe has significant potential for growth.

“And as a retailer brought up on a farm in Yorkshire, I know how producers across the region appreciated Farmison’s commitment to the best producers who could provide the highest quality meat to customers.

“That’s why I’m very excited about Farmison’s prospects.  We have an opportunity to scale this business and further develop both its direct-to-consumer and wholesale plans, building on the ethos and values of what Farmison stands for.”

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But Mr Clarke added:

“Nevertheless, there is much work to do to get the business back on its feet and trading again — not least re-engaging with Farmison’s important network of farmers across the region and re-employing colleagues”.

“In the short-term, our goal is to bring financial stability to the business, and we’re committed to re-energising Farmison’s long-term vision so it can take advantage of the growth opportunities that are undoubtedly available to it.”

In the course of the coming weeks, the consortium expects to re-open Farmison’s website.

Farmison sells online directly to customers across the UK, and through wholesale channels such as Harrods, Selfridges, Fortnum & Mason and Michelin star restaurants.

Other consortium members include former Farmison board member Gareth Whittle, founder and former managing director of Chilli Marketing.

Chilli Marketing’s Christian Barton and Kieron Barton are also involved with the consortium.

Arvindar Jit Singh, joint administrator and partner at FRP Advisory said:

“We are thrilled to have been able to secure a buyer for Farmison who is able to recommence trading and bring jobs back to Ripon.

“There had been significant interest in purchasing the business and assets of Farmison and a number of serious offers had been put forward in recent weeks, but the proposal from the consortium provides the best opportunity of both re-establishing the business and maximising returns to creditors.”

Consortium submits bid to bring back Ripon firm Farmison

A consortium led by Farmison & Co founder John Pallagi has submitted a bid to bring back the firm.

The premium online meat retailer ceased trading nine days ago and went into administration with the loss of 75 jobs.

But Mr Pallagi said he and two “high profile Yorkshire businessmen” made an offer last night to administrator FRP to buy the business and its assets.

He said the offer, if accepted, would revive Farmison and provide jobs for 50 staff.

Mr Pallagi said the consortium believed in the business model and recognised the value of the firm to Ripon. He added:

“Farmison is very important to Ripon and I am thrilled that we have attracted the interest of high profile Yorkshire businessmen with proven track records.

“It’s great that we’ve got to this point but we are not there yet.”

FRP said on Wednesday it planned to begin the sale of assets. It will now assess the bid before deciding whether to accept it.

Mr Pallagi said he hoped to have an answer by midday Monday so Farmison could operate again as quickly as possible and “create the best level of continuity possible”.

Not only have jobs been lost, but the supply chain has also been interrupted.

Last year Mr Pallagi sold the award-winning firm, whose customers include Harrods and Fortnum & Mason, to Scottish private investors Inverleith LLP.

Mr Pallagi remained as chief executive and a new three-year business plan was agreed.

FRP’s statement on Wednesday outlined the issues that brought down the award-winning company after the takeover. It said:

“The business recently underwent a fundraising process to secure external investment to support its business plan but did not secure a sufficient level of interest.

“Following a period of significant operational investment, the business has not generated the required level of revenues to sustain its high cost base.”

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Assets to be sold at failed Ripon firm Farmison

Administrators running collapsed Ripon firm Farmison & Co said today it planned to begin the sale of assets.

FRP took charge of the company on Thursday, when it ceased trading and most staff lost their jobs.

Farmison co-founder John Pallagi held talks over the bank holiday with a consortium led by two Yorkshire businessmen about reviving the business.

But there has been no news of a deal since and FRP has now issued a statement clarifying the situation.

The statement outlined the problems that brought down the award-winning company. It said:

“The business recently underwent a fundraising process to secure external investment to support its business plan but did not secure a sufficient level of interest.

“Following a period of significant operational investment, the business has not generated the required level of revenues to sustain its high cost base.

“In recent weeks interest in the business and assets has been explored but a transaction could not be completed, and the directors have therefore placed the company into administration.”

The statement confirmed Farmison had ceased trading, adding:

“Regrettably, the majority of its 75 roles were made redundant. A skeleton staff has been retained to support the joint administrators in fulfilling their duties as they move towards an asset sale, notably the brand, goodwill and intellectual property.”

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Arvindar Jit Singh, partner at FRP and joint administrator of Farmison, said:

“Farmison had made significant investment in recent years in its operations as it aimed to carve out a differentiated brand and offering in the online retail space.

“However, it proved too heavy a burden to sustain without the uplift in sales that it had expected.

“Without a major capital injection, the business could not continue trading and we must now commence an asset sale. We encourage any interested parties to come forward.

“In the meantime, we have a specialist team working with impacted staff to access support through the Redundancy Payments Service.”

Customers and creditors can contact the administrators by emailing farmison@frpadvisory.com.

‘Intense’ talks to save Ripon firm Farmison after buyout collapses

Intense negotiations are taking place over the bank holiday weekend to save one of Ripon’s largest employers .

Premium meat retailer Farmison & Co ceased trading on Thursday and entered administration. Most of the 92 staff were made redundant.

All items on the company’s website are currently listed as ‘out of stock’.

Farmison co-founder John Pallagi told the Stray Ferret he was talking to a consortium led by two Yorkshire businessmen about a management buyout.

It comes after buyout talks with another online butcher, Tom Hixson of Smithfield, fell through.

Mr Pallagi said:

“I hope to have some news by the end of the long weekend.

“Farmison isn’t trading at the moment but I haven’t given up hope. We are an amazing business and this is a great opportunity.

“We have half a million people on our database and an established UK brand that has won many awards. There’s every reason to keep this company alive.”

Mr Pallagi said last night he had been engaged in 48 hours of exhausting talks with the potential new owners after administrators FRP took control of the company on Maundy Thursday.

He said the firm had serviced all orders that had been placed and a “small working team” remained on site to deal with any unresolved issues.

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Last year Mr Pallagi sold Farmison, whose customers include Harrods and Fortnum & Mason, to Scottish private investors Inverleith LLP.

He remained as chief executive and a new three-year business plan was agreed. But when the plan faltered he approached Ripon and Skipton Conservative MP Julian Smith and Prime Minister Rishi Sunak for help.

Mr Pallagi said:

“I’m a fighter. I’ve been in this business for 21 years and I’m confident we can turn around this wrong turn that we’ve taken.”

Mr Pallagi started Farmison to work with local farmers and encourage people to ‘eat better meat’.

Despite sales doubling to £12m in 2021, the company then made a loss of £2.6m.

 

 

90 jobs at stake as struggling Ripon firm Farmison seeks buyer

Struggling Ripon premium meat online retailer Farmison & Co is in negotiations with a potential buyer.

The firm, which employs 92 staff, is in advanced discussions with another online butcher, Tom Hixson of Smithfield.

A company called Tom Hixson Farmison was registered with Companies House this week. Thomas Hixson is listed as the sole director.

It is hoped the deal will be finalised next week and save jobs at one of Ripon’s biggest employers.

Farmison

Farmison is based on Bondgate Green in Ripon

Last year Farmison founder John Pallagi sold the firm, whose customers include Harrods and Fortnum & Mason, to Scottish private investors Inverleith LLP.

Mr Pallagi remained as chief executive and a new three-year business plan was agreed.

But Mr Pallagi told the Stray Ferret today the plan had “faltered” and he hoped the situation would be resolved soon.

He has approached Ripon and Skipton Conservative MP Julian Smith and Prime Minister Rishi Sunak for help after the company encountered “choppy waters” caused by issues such as war in Ukraine, the cost of living crisis and Brexit.

Mr Pallagi added:

“The most important thing now is protecting jobs and protecting the supply chain. I’m hoping a sale will support that.

“I’ve got people who have worked with me here for 11 years and we have gone from nothing to staying open during the pandemic and delivering seven days of the week.

“It’s unfortunate that we have got into this situation.”

Mr Pallagi said he was “not overly chuffed” at seeing the company he had built up face difficulties.

But he added he believed the Farmison model was the right one and the firm could have a strong future.

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Mr Pallagi co-founded Farmison to work with local farmers and encourage people to ‘eat better meat’.

Despite sales doubling to £12m in 2021, the company then made a loss of £2.6m and faces an uncertain future if a deal is not reached.

The Stray Ferret has approached Tom Hixson of Smithfield for comment.