Farmers hit by abattoir closure

Cwmni Cig Arfon was founded 12 years ago

Around 90 farmers are owed money after the collapse of a north Wales abattoir and meat processing company, according to a trade union.

The Farming Union of Wales (FUW) believes some farmers are due up to £12,000 by Cwmni Cig Arfon.

Accountancy firm KPMG has been appointed as administrators at the troubled firm.

FUW representatives met the administrators and the directors of the company on Tuesday in Caernarfon.

FUW members were told the administrators were hopeful a buyer could be found.

"KPMG were not in a position to give us the actual number of potential buyers," said FUW's Caernarfon County Executive Officer Gwynedd Watkin.

"But they did state there were a number of interested parties and that they were assisting the directors to market the business."

Money

The FUW claims up to 90 farmers from all parts of Wales, the bulk of them within Caernarfonshire, are owed sums ranging from £200 to over £12,000 by Cwmni Cig Arfon.

Half the workforce of 68 were laid off during August.

"We are glad to hear that there are a number of enquiries and we sincerely hope that a deal can be struck within the very near future," said FUW Chairman Richard Parry.

"Obviously, the more interested parties that are bidding for the business the greater the likelihood is of farmers receiving some of their money back."

Cwmni Cig Arfon was founded in 1992 on the Cibyn industrial estate, Caernarfon and slaughtered 2,500 lamb and 200 cattle each week.

Two years ago it opened a new £1m processing centre with financial help from the Welsh Assembly Government.

A spokeswoman for KPMG confirmed it had been appointed as administrators of Cig Arfon on Tuesday.

"We will be talking to lots of people in our role as administrators," she said.