Rescue deal struck for Wigan foods company
A deal has been struck to safeguard the future of an Indian foods firm in Wigan after administrators were called in.
Unexpected losses on a number of contracts had caused serious problems for Ince-based Simano Foods, according to business analysts.
Administrators Leonard Curtis have confirmed that 11 jobs have been saved at the outfit, which was first established by Maggan Khade in 1993 and had formerly traded as Pasco Herbs and Spices.
But representatives for the turnaround specialists were unable to say, when approached by the Wigan Post, how many posts have been lost after the company was sold to a related party.
Joint administrators Mark Colman and John Titley said in statement: “The business entered administration as a result of unforeseen losses on a number of major contracts which meant the company suffered a build-up of trade liabilities.
“Legal action was imminent and therefore appropriate steps were taken by the directors to preserve the business.
“The administrators concluded a pre-packaged sale of the business to a connected party after an extensive period of marketing.
“This resulted in the transfer of 11 employees to the new purchasing entity.”
The company was responsible for a number of trading names, from their Pasco brand of curry sauces to New York Chilli, The Fancy Snacks Company and Mrs Muamba’s to Nature’s Lean Kitchen and Dewhurst.
Mr Khade, the founder, had previously worked for market leader Patak’s, in Bombay and Wigan, and has told the Wigan Post in the past that their success was based on sauces which started life in the family kitchen.
He has spoken with pride of building up his Ince factory from semi-dereliction to a state-of-the-art facility, after he invested more than £2.5m in making his firm a genuine contender in the competitive Indian foods market.
Securing a number of foods prizes along the way, including the Fine Food Guild’s gold award, the company branched out to mainland Europe and Australia and chased deals in North America, Kuwait and the Arab Emirates.
One of their crowning glories came when Mr Khade and his team served a feast for the British Ambassador’s Queen’s Birthday Party in Lisbon.
The company, while flying the flag as part of overseas trade missions, has also promoted its wares in Asda and Sainsbury’s stores.