Rejected Hall’s meat plant bidder may ‘consider legal action’
The md of a finance firm that made an unsuccessful bid to buy Hall’s meat plant in West Lothian and…The md of a finance firm that made an unsuccessful bid to buy Hall’s meat plant in West Lothian and save its 1,700 jobs may consider legal action against the facility’s owner Dutch multi-national Vion Group.
Steve Green, md of the Graph Mortgage Corporation, told BBC News he may consider a legal response after Vion announced today that it will close the factory with the loss of 1,200 full-time jobs and 500 seasonal jobs.
Green described the closure as “absolutely ridiculous” after his firm submitted a seven-figure bid for the plant. He added: “We have communicated to Vion on a number of occasions that it was our plan to save as many jobs as we could [at Hall’s] in Broxburn.
Certainly 1,200 permanent employees’ jobs could be save and we would do what we could to keep as many seasonal workers as possible.”
He claimed Vion "never had any intention whatsoever of selling this business".
'No intention of selling'
But an informed independent source told FoodManufacture.co.uk: “I cannot see the logic of Vion blocking a viable bid for the plant. If the Hall’s meat plant were to continue in operation, it would not complete with Vion’s other plants because it mainly supplies the Scottish market. So it is difficult to believe that the bid could have been successful.”
A spokesman for Vion UK said the firm had asked the Graph Mortgage Corporation for more details about its rescue plan. Since those had not been forthcoming, it decided to dismiss the bid.
The spokesman declined to comment on the prospect of a legal challenge to its decision not to sell the plant.
Meanwhile, Lawrence Wason, divisional officer with the Union of Shop, Distributive and Allied Workers (USDAW), compared Hall’s closure to the closing of the Ravenscraig steel plant in the 1990s.
'Ravenscraig of food manufacturing'
“This is the ‘Ravenscraig’ of the Scottish food manufacturing industry. It’s a very dark and drastic day – the darkest for 20 years.”
Wason said it would be difficult for people who had lost their jobs to find alternative employment and the effects would be felt not just in West Lothian but throughout Scotland. “It’s very unlikely that the business will be sold,” he said. “Some small parts of the business may be sold on later but that won’t affect many jobs.”
Vion said in a statement: “This is a very sad day for the company but, unfortunately, the plant continues to suffer unsustainable losses of £79,000 a day. Consequently, it is with great regret that we can confirm that it is our intention to proceed with plans for a phased closure of the plant.”
The phased closure of the plant was expected to begin next month when the butchery and abattoir were scheduled to close. All operations at Hall’s will close by next February.
