Hot Seat: Bringing Ripon firm Farmison back to life

Shortly before Christmas, Andy Clarke heard rumours all was not well at Ripon firm Farmison & Co.

Having spent a career in retail, including six years as chief executive of Asda, Mr Clarke was aware of the company’s mission to ‘eat better meat’ and innovative business model, which had attracted clients including Harrods and Fortnum & Mason.

He was approached about getting involved but was busy at the time. He adds:

“The phone went quiet for a while and then there was a bit more noise about the company being in a challenging position. When it went into administration, I decided to look in more detail.”

Farmison entered administration on April 6 — Maundy Thursday. The ensuing Easter drama ended, appropriately, with a resurrection when a consortium spearheaded by Mr Clarke acquired the business from the administrators just over two weeks later.

It prompted a collective sigh of relief in Ripon, where Farmison was one of the city’s largest and most feted employers, with almost 100 staff and numerous awards.

Farmison

Farmison will stay at Bondgate Green

Some former staff, who lost their jobs when administration happened, are being rehired and new ones are being sought as Farmison prepares to recommence trading within weeks.

What possessed Mr Clarke to get involved as executive chairman? He says:

“I’ve lived in Yorkshire most of my life and I’ve always been keen to support Yorkshire businesses. I’ve a strong affection for local and Yorkshire. I was chair of Leeds Bradford Airport for nearly five years.

“When I saw what I believed to be a great brand at risk of disappearing I felt I had to have a look to see if I could help. At that point I didn’t know what help was. It soon became clear I had to find a partner and invest in it.”

From then, events moved rapidly.

“It became a race to see who was going to rescue the business. In the final throw of the dice, we were given approval by the administrators who felt our bid to take forward the business and protect jobs was the strongest.”


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The four-strong consortium also includes Gareth Whittle, the founder and former managing director of Chilli Marketing. But not Farmison co-founder John Pallagi, who was heavily involved in the race to save the company until the last minute. Mr Clarke says:

“We discussed with John what role he might play. We are still talking to John – there could be a role for him in future. He developed a great brand and his vision to ‘eat better meat’ is what attracted me.”

Mr Clarke says the immediate challenges are to refocus, manage the cost base and stabilise the business to bring it back to growth. No drastic changes to its business model are planned. He says:

“It’s fundamentally a good business that ran out of petrol because the cost base was too high.

“We are primarily a B to C supplier. That’s the primary purpose of the business and I would suggest that will be retained.”

Mr Clarke, who lives in East Yorkshire, says he’s had “brilliant support” from suppliers even though Farmison’s administration left some being owed money. He says:

“It’s sad that these businesses have lost out because of the previous company and the previous management team. We will develop a stronger business together.”

He reaffirmed Farmison’s commitment to its Bondgate Green site in Ripon by saying the consortium has assured the landlord it intends to stay. He says:

“It’s a great site. We are at the heart of the community.”

‘Eat better meat’ is Farmison’s strapline

Mr Clarke, who is also chair of Menzies Distribution and holds other senior roles, will divide his time at Farmison with his other business ventures.

Chief operating officer Michelle Kennedy is in charge of day-to-day operations, supported by commercial director Andy Cavanna and finance manager Liam Duggan.

“I add value through my experience but when it comes down to it it’s about the capability of the team to work together and get this business back to where it’s meant to be.”

Even with his long experience in retail, however, he says the Farmison acquisition has been “quite a journey”.

“I’ve driven the Ripon Road on more occasions than ever before. It’s been great. I’ve loved it. It’s a very exciting business to be involved in and we hope we can make it successful again for Ripon.”

 

Ripon 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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M&Co Ripon store to close in nine days

Retailer M&Co is to close its branch on Fishergate in Ripon a week on Saturday.

The Scottish company, which sells clothes and homeware, went into administration for a second time in December.

Yours Clothing bought the website, brand and intellectual property but not the shops.

It means all 170 M&Co stores have either closed already or will do so shortly. About 1,900 staff are affected.

Remaining stores are offering up to 60% discounts.

Retail manager Shirelle Wallace-Hoyle posted on the Ripon M&Co’s Facebook page:

“The last day of trading for us will be Saturday 22nd April, when the last few store within the business will all close.

“We are literally one of a few of the the last stores standing till then.

“I would like to say a massive thank you to everyone who has supported the store since it opened in 1979. We have had so many lovely customers support us.”


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