Eversfield Organic, a Devon-based food retailer, finds itself in serious financial trouble, leaving £7m in debts unpaid.
- The company, which once supplied Selfridges, is unable to meet its financial obligations and has entered administration.
- Major creditors like HSBC are not expecting to recover their investments due to the lack of available funds.
- Administrators report the company’s key financial setbacks include losing significant business accounts and accruing substantial losses.
- Former owner Mark Bury expresses his regret over the company’s downfall while embarking on new ventures.
Eversfield Organic, a notable name in Devon’s organic food sector, has succumbed to severe financial difficulties, resulting in the cessation of its operations and entering administration. The company, renowned for supplying premium produce to London’s prestigious Selfridges, has accumulated nearly £7m in unpaid debts.
The firm appointed Mazars as administrators, who have determined that rescuing Eversfield Organic as a viable entity is not feasible. This financial turmoil means major creditors, including HSBC, with a claim exceeding £2m, are unlikely to recoup their investments. Additionally, around 22 employees laid off in September 2023 hope to receive approximately £3,833 as preferential creditors, with the Government’s Redundancy Payments Service processing these claims.
Eversfield Organic’s financial distress is highlighted by a statement indicating that unsecured creditors are poised to claim a collective total of £4.781m. To date, 51 claims, totalling £848,770, have been lodged. However, due to insufficient funds, settling these debts appears unlikely.
Eversfield Organic began its journey in 2003, offering fresh produce and meats online and at its shops, pubs, and notable concessions at Selfridges. The company’s fortunes peaked in 2021 with a turnover of £8.3m during the COVID-19 pandemic. However, a significant turning point occurred in 2022 when Eversfield lost £2.3m worth of business following the termination of accounts with Ocado and Abel and Cole, which adversely affected its revenue.
By 2023, the company found itself in a precarious position, operating at a loss of £1.6m. A proposed sale to Kimbardel, a meat and produce trader, was pursued, with 94 staff transferring in October last year. However, this venture led to further complications as Kimbardel (Eversfield) was unable to sustain operations and entered administration in early 2023.
The company’s final days were marked by store closures in Totnes, Tavistock, and Marlborough, with added complexities arising from legal disputes over the sale’s terms involving Eversfield’s headquarters in Okehampton. The legality of the sale remains contested, and issues surrounding a purported £266,968 debt for rent and other expenses persist.
Mark Bury, the former owner, described the company’s fall as “a tragedy”. He has since redirected his energy towards building new enterprises—Soil and Sea Hospitality and Soil and Sea Online, aiming to revitalise some of his former ventures.
The collapse of Eversfield Organic underscores the challenging financial landscape facing many businesses today.
