10/5/12 BBC News
The mayor of Caernarfon Ioan Thomas says the closure of an abattoir in the town is not a surprise, but the job losses are a disappointment.
An abattoir and a meat producer in Gwynedd have ceased trading after going into administration.
Sher Halal Foods and United Halal Foods, based at the Cibyn industrial estate in Caernarfon, have combined debts of almost £650,000.
Administrators SFP, who hope to sell the two businesses, said they employed 35 people and had a turnover of £12m.
The companies set up in 2009 after a previous firm, Cig Cibyn, went into administration.
Daniel Plant, group partner at SFP, said the companies went into administration at the beginning of May due to cashflow problems.
‘Business and assets sale’
“Despite having substantial turnover Sher Halal Foods Limited and United Halal Foods Limited were both unable to continue trading,” he said.
“An increasingly tough environment for the food processing industry”
Daniel PlantSFP, administrators
“We are undertaking a marketing campaign for a sale of the business and assets.”
Mr Plant added that the problems faced by the two business at Caernarfon suggested an “increasingly tough environment for the food processing industry”.
Caernarfon’s mayor, Ioan Thomas, said the closure was not a surprise, but it was disappointing, especially the loss of local jobs.
William Hughes, from the National Farmers Union, said it was one less place for farmers to sell their sheep and lambs.
“It’s important for the area that someone buys the place.
“My understanding is that lambs were bought from local markets, and not that many were bought direct from farmers,” he added.
Gwynedd Watkin from the Farmers Union of Wales added: “The closure is a pity because it’s a loss of another local resource.”
The two present companies moved to Cibyn in 2009, three months after Cig Cibyn went into administration.
At the time it was reported the sale would result in a major overhaul, designed to improve productivity and raise standards.
In November 2008, farmers’ unions said some of their members were owed thousands of pounds by Cig Cibyn in Caernarfon, with one farmer claiming he was £12,000 out of pocket.
The company went into administration, three weeks after making 51 workers redundant.