Jobs to be cut as Tomlinson's Dairies goes into administration

PwC confirmed it had been appointed administrators after Tomlinson's Dairies experienced "significant cash flow pressures".

As well as its base near Wrexham, the dairy has operations in Shropshire, Chester and across the north west.

Farmers were told the news in phone and text messages at the weekend that Tomlinson's could not accept their supplies.

In a statement, the administrators said: "Tomlinson's had suffered an accumulation of significant operating losses over recent years which were exacerbated by industry wide issues such as energy costs and a depressed cream price.

"The directors unfortunately had no alternative but to place the company into administration. Our thoughts are with the employees affected and we have ensured a range of support measures are available to them at this difficult time.”

Tomlinson’s was established in 1983, when brothers Philip and John Tomlinson decided to diversify into liquid milk processing on their family farm in north Wales.

A spokesman for Tomlinson's Dairies said the family shareholders, directors and management are "devastated" and "sincerely regret its impact on their customers, suppliers, farmers and employees".

NFU dairy board chairman, Michael Oakes, said: “We received reports over the weekend that Tomlinson’s had told its suppliers to find alternative processors for their milk.

“We are currently seeking urgent clarification and investigating further to understand the potential implications of the administration for our members.

“We believe there are around 70 producers affected, many are part of retailer aligned dairy groups. We want to clarify the position for our members on supplying their milk elsewhere, and we want to know whether they will be paid for milk already supplied to Tomlinson’s.”

NFU chief dairy adviser, James Osman, added: “We are working hard to support our members affected by this issue.

“We have put together a briefing for NFU members which is available on our website or from our CallFirst team on 0370 845 8458.

“The dairy team will keep that briefing updated as new information becomes available.

“We can also refer members for legal advice to an NFU legal panel firm, Lanyon Bowdler for Shropshire and Staffordshire, funded by the NFU’s Legal Assistance Scheme.”