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Manfield Puts An End To MCM Select Foods' Business

Seeing no opportunities to sell its remaining investment in canned seafood supplier, MCM Select Foods, private equity firm, Manfield Partners is now in the process of closing down the UK division of the company. Earlier it sold off the Dutch part of the company.

London-based Manfield acquired MCM Select Foods from Japanese conglomerate Mitsui in 2011. Despite stating that the business has been “consistently profitable” since the acquisition, Manfield explained that they have been winding down operations over time and business is likely to be stopped later this year, due to lack of any interested buyers.

Manfield managing director, David Arrow, told Undercurrent News that it sold the remainder of its Dutch operations of MCM Foods b.v. in February this year to Gloe & Zeitz, but has taken the decision to close down the UK division that mainly supplies tuna, salmon, mackerel and other fish and fruit. MCM used to be the leading canned tuna importer in the catering and industrial sector within the UK, but after the company faced financial disaster in 2010 this position rapidly weakened.

In speaking to Undercurrent News, Arrow explained that MCM has a “very small amount of stock awaiting call off and anticipate that things will be concluded pre-Christmas. We have been operating with a skeleton of staff for some months now and we are assisting them with outplacement and support to find alternative employment in the New Year.”

He added: “We just decided that this was the right time for this to take place and return value to shareholders.

According to MCM accounts of the financial year ending March 2013, the company had warehouse stock worth of around USD 21.3 million and a pre-tax profit of approximately USD 10 million. This was compared to a loss in the previous year.

Arrow told the seafood website: “When we exit from the MCM business we would be keen to pursue other appropriate investment opportunities in the canned seafood sector.”