Brexit blamed as plunging pound leads to hundreds of jobs losses at supermarket salad supplier

 
Oliver Gill
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Packaged Salad Is The Second Fastest Selling Item On Grocery Shelves
Administrators said Southern Salads was not prepared for sterling's dramatic nose dive (Source: Getty)

Hundreds of jobs have been lost at a supermarket salads supplier after the firm failed to get to grips with a plunging pound in the wake of the Brexit vote.

Kent-based Southern Salads today called in administrators from FRP Advisory, which took the decision to cease trading immediately.

All but a handful of the firm's 260-strong workforce have been made redundant.

Ian Vickers, joint administrator and partner at FRP Advisory, said:

Southern Salads, a family run Kent-based business, had traded for around 30 years and managed over the years to deal with the increasingly competitive pricing pressures from supermarkets and other retail chains faced by all food supply businesses.

Read more: Mark Hix has finally had enough of supermarket salads

The firm invested heavily in 2014 in expanding operations, with annual turnover reaching £30m by 2016. It was producing 50 tonnes of salad per day for customers.

But the June 2016 Brexit vote and associate dive in the value of the pound left the firm with "unprecedented pressure on cash flow".

Without currency hedging in place, Southern Salads was left with a fall of between 10 per cent and 20 per cent in its purchasing power for overseas-grown salads required for the winter and early spring UK market.

The firm brought in FRP earlier this year to try and secure new investment. When no backers were found the company was left with no alternative but to cease trading, seek protection of administration and begin the process of selling off its assets, FRP said.

Read more: BHS administrators track millions taken out of retailer by Dominic Chappell

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