A major UK food wholesaler has collapsed into liquidation, resulting in the loss of 71 jobs and sending shockwaves through parts of the UK’s food supply chain.
Enterprise Foods Ltd, which most recently traded under the name Localist – The Food Merchant, supplied food products to a number of well-known retailers, including Morrisons, Co-op and independent stores across the UK. The company has now ceased trading after attempts to restructure its finances failed, leaving debts reported to exceed £5 million.
Originally established in the mid-1990s as Food From Scotland Ltd, the business built its reputation supplying independent Scottish retailers before expanding across the UK. It later became Enterprise Foods Ltd in 2001 and rebranded as Localist – The Food Merchant in 2025 in an effort to revitalise the business. Less than a year after that rebrand, the company entered liquidation.
The collapse has resulted in 71 UK workers losing their jobs, while many smaller food producers who relied on the wholesaler as a route to market are also expected to suffer significant financial consequences.
George Lafferty of BTG was appointed liquidator, with the firm tasked with winding up the company and assessing claims from creditors.
Thomas McKay, Managing Partner of BTG in Scotland and Northern Ireland, said the directors had made considerable efforts to restructure the business and avoid redundancies. However, those efforts ultimately proved unsuccessful.
He also warned that numerous smaller suppliers remain owed money, meaning the collapse extends well beyond the immediate workforce. Many local producers now face uncertainty over unpaid invoices and the loss of an established distribution network.
BTG has confirmed it is working with former employees to help them access statutory redundancy payments and other financial support, including assistance through the Partnership Action for Continuing Employment (PACE) service and the Redundancy Payments Service.
Fortunately for consumers, both Morrisons and Co-op have indicated that they do not expect any disruption to product availability.
Morrisons stated that Enterprise Foods supplied only a limited number of products and that it had already begun working directly with suppliers where appropriate.
Co-op also moved quickly following the liquidation by issuing purchase orders directly to affected producers to maintain supply and protect many smaller businesses. The retailer has since confirmed that it has successfully reached direct agreements with almost all of the suppliers previously trading through Enterprise Foods.
A Co-op spokesperson said the retailer was proud to support British producers and believed it was important to act quickly following the unexpected collapse to provide reassurance and continuity for many smaller local suppliers.
What support is available for affected workers?
Workers who lose their jobs following an employer entering liquidation may be entitled to a range of statutory payments, including:
- Statutory redundancy pay (subject to eligibility).
- Payment for unpaid wages.
- Payment for accrued but untaken annual leave.
- Statutory notice pay where applicable.
- Assistance with finding new employment and training opportunities through Government support services.
Anyone affected should ensure they receive all documentation from the insolvency practitioner and submit claims promptly through the appropriate Government channels.
The Workers Union says
Jonathan Morgan of The Workers Union said:
“Every redundancy represents a person or family facing uncertainty. While it is encouraging to see retailers stepping in to support smaller suppliers, our immediate thoughts remain with the 71 workers whose livelihoods have been affected. We encourage anyone impacted to ensure they understand their employment rights and access every financial entitlement available to them as quickly as possible.”
Business failures rarely affect only one organisation. As this case demonstrates, when a wholesaler collapses, the consequences can quickly spread to workers, suppliers, local producers and the wider economy. Ensuring workers receive timely support, help and clear guidance during redundancy is essential in helping them move forward with confidence.
