Jobs at risk as mushroom firm enters administration
More than a dozen posts are under threat after a mushroom company went into administration, blaming tough business conditions.
Stephen Cave of PwC was appointed joint administrator of Button Farm Mushrooms in Markethill yesterday.
The Co Armagh business, which has been selling mushrooms for the last three years, has 14 employees. Following the loss of a major contract, along with increased raw material costs, the firm's directors took the decision to place it into administration.
While it's understood that staff have been sent home, they have not yet been made redundant.
Administrators will make a rapid assessment of the business and its assets, before the workers are brought back in to be told whether or not they will be kept on.
The company has a new top-end production and growing facility outside the village.
It faced "difficult trading conditions in recent times", PwC said, which included increased raw material costs and the loss of a key customer.
That resulted in poor trading performance and "severe" cash flow problems. It meant the company was no longer able to trade in its current form.
Mr Cave said: "The business has faced a number of adverse factors, which have impacted significantly on its ability to trade profitably and these ultimately led to the directors making the difficult decision to appoint administrators.
"Our priority is to work with directors in assessing the immediate financial and trading position of the business and to communicate with the workforce, key customers and suppliers.
"In parallel, we will be exploring sale opportunities for the business."