Rivington Biscuits, the popular brand of pink wafer, has been plunged into administration following the sharp fall in the value of the pound following Britain’s decision to leave Europe.
The administrator, FRP Advisory, blamed a “sustained deterioration” in the value of Sterling following the Brexit vote for making the biscuit firm’s financial woes even worse. The firm, which produces Pink Panther wafers, is now set to make 99 of its 123 staff redundant, keeping the final 24 on while a buyer is sought. The biscuits have the iconic pink panther cartoon character on their packets.
While Christmas would be expected to be a busy time for the biscuit maker, administrators say the company will now by fulfilling orders into the New Year. However, it’s future clearly remains uncertain after that.
Decline in the value of Sterling
Rivington, which trades in Wigan, is owned by a Dutch parent company Van Delft. Over the past year, the biscuit maker has been struggling to cope with tricky trading situations, and has now been left with no choice other than to put itself into administration. The decline in the pound against the euro was the final straw for the company, dramatically increasing the cost of ingredients which Rivington imported from Europe.
The administrators said it had been a touch decision to make a large number of redundancies. Staff have been told they are losing their jobs in the run up to Christmas. Half of the workers who have lost their jobs at Rivington have already put in claims and hope they will get their redundancy payouts before Christmas day. Since buying the firm, the parent company has ploughed £7m into it, but has not been able to make it work financially. Ironically, 63.9 per cent of those who voted in Wigan during June’s referendum voted to leave Europe.