'Business as usual' at Orchard House foods in Corby as hard-working staff battle to save company

Staff at Corby’s Orchard House Foods have this morning rolled-up their sleeves and carried on to aid a bid to save the firm’s five Corby factories.

The Earlstrees Industrial Estate company announced late last night that it is entering administration, weeks after its Gateshead factory closed.

This newspaper has learned that those involved in the administration are hoping to keep the Corby site open as part of a pre-pack deal, with the company’s assets sold as a going concern to existing directors or a third party.

About 500 local jobs are said to be in the balance as negotiators sit around a table in Corby to try to hammer-out a deal. Other Corby-based suppliers, employment agencies and support companies are believed to be among Orchard House’s creditors. It is not yet known the extent to which the firm will settle existing debts.

The company supplies fruit-based products to Sainsbury’s, Tesco and Pret a Manger.

This morning (Wednesday, January 11) it was business as usual with lorries seen entering and exiting the site, including one from another major customer – M&S.

About 7,000 of Corby’s 42,000-strong workforce are employed in the manufacturing industry – double the national average.

Corby is regarded as the kitchen of England, with most manufacturing staff involved in food production. Bread producers Jacksons and Bakeaway recently opened new factories in the town. Fruit manufacturer Blue Skies has a large base here, as well as crisp-maker Tayto, breakfast cereal manufacturer Weetabix, spice coatings provider Newly Weds, fruit wholesaler Fresh Direct, flour miller ADM and ingredient innovation firm Foodmaker.

MP for Corby Tom Pursglove said: “I know that today's news emanating from Orchard House Foods, a significant employer in Corby, will be of real concern to many local families, following the announcement of the appointment of administrators. Following their appointment, I will be immediately contacting the administrators, seeking an urgent meeting with them to understand the situation, next steps, and what support is being put in place to help employees navigate through this worrying period.

“I am also engaging with Corby JobCentre around contingency planning for anyone adversely affected, and who may require guidance, help and support, including around finding alternative work opportunities quickly, should that regrettably prove necessary, as well as receiving any redundancy money to which they are entitled.

“I hope, however, that a durable way forward can be identified that preserves these jobs at this longstanding local business - and all those affected and the wider community can be sure that I will do everything I can to support this endeavour, as I have actively in the past in similar circumstances affecting other local businesses.”

Leader of North Northants Council Jason Smithers said that if the company did not survive, the council would offer practical support to those affected. He said: “It’s very sad news.

"These are very challenging times for businesses of all sizes at the moment but it’s important that we remember the workers affected.

"Corby is a brilliant area with a vibrant jobs market and there are companies screaming out for staff so if there are job losses, we know that there are jobs out there for them.

“NNC will always be ready to help. We have a jobs club taking place at the Corby Cube on January 24 which give people the chance to improve interview skills. We can offer council tax support and discretionary housing payments should people need them.

"I don't have an over-enthusiastic view of some of these venture capitalists. It’s all about the money and a lot of the business is done by borrowing money as they’re unable to fund things from money sitting in their bank.”

Orchard House was opened in Corby in 1985. It was sold to a private equity firm four years ago, then sold on again in January 2021 to another group of venture capitalists, Elaghmore who appointed a new team of senior managers.

In December, staff in Gateshead were not paid their promised redundancy packages. Their MP Liz Twist raised the issue in the House of Commons. This morning, she told the Northants Telegraph: “I am dismayed at the news that Orchard House Food is filing for administration and my thoughts are with every member of staff affected by this outcome.

“At a time when cost of living is soaring and following a month of uncertainty, former staff will now need to wait even longer for their redundancy payments, it is devastating news.

“I will to work to ensure that between the business and the Insolvency Service, former staff receive their entitlement as quickly as possible.”