Administrators close milk depot

A Lincolnshire milk depot has closed with the loss of 127 jobs after the cooperative that owns it went into receivership.

Administrators Price Waterhouse Coopers announced the immediate closure of Boultham Park Dairy in Lincoln after failing to find a buyer for the depot.

The firm said the decision to close the depot was its only option.

Owners Dairy Farmers of Britain (DFOB) ran into financial difficulty following the loss of a supermarket contract.

'Untenable' situation

DFOB is a broad-based dairy co-operative, owned and governed by its farming members.

In a statement, the administrators said: "Since our appointment last Wednesday, we have been working very hard to find a buyer for the Lincoln dairy.

"Unfortunately, a lack of interest in the business as a going concern combined with a number of customers switching suppliers, have made the situation untenable.

"To that end, we have been left with no choice but to close the dairy in order to stem any losses."

The administrators said they had discussed the situation with the Department for Environment, Food and Rural Affairs, the National Farmers' Union as well as other unions.