Jobs lost as Heart of England Fine Foods to enter liquidation

The not-for-profit company has collapsed after 16 years, blaming a combination of factors for it spiralling into debt, including missing out on funding from the government's UK Trade and Investment group.

In a statement, Heff said that while its move to Shrewsbury College of Arts and Technology last year had provided a temporary lifeline, it was not producing enough income to replace the funding it lost and was not viable for the future.

It blamed the government for being "short sighted" in not supporting a group that was created to market the food and drinks industry in the region and warned its closure could have a disastrous impact on small firms, putting hundreds of jobs at risk.

In a statement Heff said: "This decision has not been an easy one to take and does not reflect the hard work and commitment of the team of 15 staff but as a board of directors we have no other choice."

Steve Wain, principal at Shrewsbury College, said: "Naturally we are disappointed to hear this news and the college is meeting with Heff in order to discuss arrangements for the restaurant which it shares with Origins, and the Local Food Store.

"Origins Restaurant, which opened in October, and the associated hospitality and catering training facilities, are both wholly owned by the college so will be unaffected by this news."

In a final statement announcing the move, Heff took aim at the government for failing to give it the backing it needed to continue operating.

"We believe the government is short-sighted in not recognising the added value Heff brings to the food and drink industry and the contribution made to the economy through its activities," the company's directors said in a statement.

"The closure of Heff will have significant repercussions for business across eight of the English counties. Whilst the immediate job losses at Heff will be 15, the knock-on effect is likely to see hundreds of jobs within small businesses put at risk.

"Over the past 16 years it is estimated that Heff has generated in the region of £90m gross value added through its work, created and safeguarded in excess of 2,000 jobs and supported at least 2,800 food and drink manufacturers.

"As a board we are rightly proud of Heff's achievements over the years. These are due to the support of partner businesses we have worked with across the supply chain, the dedication and commitment of directors and members of staff, past and present, and the quality of food and drink being produced by our members."

Launched in 1998, Heff was set up to create trade opportunities for food and drink producers across the region.

Most recently it developed new trade links with Poland which saw members' goods sold to customers in central Europe. It also ran its Taste Kitchen to help its producers to develop new recipes.

Heff had been three years into a six-year deal to manage the Shropshire Food Enterprise Centre on the Battlefield Enterprise Park last year, but when that was ended by Shropshire Council, it moved into the newly refurbished Shrewsbury College.

Heff added it still hoped to avoid liquidation ahead of talks for shareholders on July 9, at which a liquidator will be appointed.