Button Farm Mushrooms,set up by brothers Jonathan and David McKew only a few years ago, is to go into administration as of 18th October.
The specialist mushroom company in Markethill Co. Armagh employs up to 15 personnel, who have been put on leave until the administrator makes an assessment.
Administrators will make a rapid assessment of the business and its assets, before the workers are brought back in to be told whether or not they will be kept on.
on Wednesday 18th October Stephen Cave from PwC confirmed his appointment as joint administrator after the business was hit by increased raw material costs and the loss of a key customer.
This has resulted in poor trading performance and severe cash flow problems, with Button Farm Mushrooms “no longer able to continue trading in its present form”.
Mr Cave said: “The business has faced a number of adverse factors, which have impacted significantly on its ability to trade profitably and these ultimately led to the directors making the difficult decision to appoint administrators.
“Our priority is to work with the directors in assessing the immediate financial and trading position of the business and to communicate with the workforce, key customers and suppliers. “In parallel, we will be exploring sale opportunities for the business and hope that its modern, purpose-built facility will attract interest within and beyond the sector.”