Up to 14 jobs are under threat after a county Armagh mushroom business entered administration.
Button Farm Mushrooms, which operates a specialist growing and packing facility near Markethill, cited “severe cash flow problems” for their current predicament.
Brothers Jonathan and David McKew established the company three years ago.
They had invested £1.5 million to develop the state of the art facility and had quickly become a firm favourite of many food producers in Northern Ireland.
However, on Wednesday 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.
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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.”
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