Two halal processing plants go bust

Two Welsh halal processors have gone into administration after amassing combined debts of almost £650,000.

Sher Halal Foods Limited, a abattoir that produced meat and poultry meat products, and United Halal Foods Limited, a processing plant, employed 35 people and had an annual turnover of approximately £12 million. Both facilities were based in Caernarfon, Gwymedd.

Administrators SFP said that the companies had run into “financial difficulties” and were forced to cease trading due to cash-flow problems.

Daniel Plant, group partner at SFP, said: “Despite having a substantial turnover, Sher Halal Foods Limited and United Halal Foods Limited were both unable to continue trading. We are undertaking a marketing campaign for a sale of the business and assets.”

The adinistrator warned that the problems faced by the businesses suggested an “increasingly tough environment for the food industry”.