Ninety staff have been made redundant following the collapse of East Yorkshire-based potato processor M&F Ltd.
The company lost a significant customer, causing the business to cease trading. Administrators have been called in by the Directors.
Andrew MacKenzie and Paul Stanley, of Begbies Traynor, were appointed joint administrators on March 13, at the request of the directors.
The £9m turnover firm supplied peeled, chipped and sliced potatoes to major supermarket chains.
The company's existing factory at Plaxton Bridge Road, Woodmansey, near Beverley, was able to process over 100,000 tonnes a year of potatoes and other root vegetables.
Among the firm’s unsecured creditors owned are nine growers, owed an estimated £500,000 on Monday (27 March).
Mr MacKenzie said: “The business was trading well, despite tight margins in the sector, prior to the loss of one major contract.
“It was clear very quickly that without the same level of revenue the business had no way to cover its costs, and unfortunately the doors had been closed on March 10 before our appointment.
“Our early investigations concluded that without the company's main customer, which was responsible for the majority of the revenue for the business, there was no alternative to keeping the business closed to prevent liabilities rising."
The administrators are looking for a potential buyer for the processing site.
