More than 600 jobs lost as Kanes Foods folds

More than 600 people have lost their jobs after a Worcestershire-based food company went into administration.

Kanes Food Limited makes prepared meals, including pre-packaged salads, stir-fry products and sauces, from a site in Evesham, and supplies several major UK supermarkets.

It employed 662 people and was one of the largest employers in its constituency, said Nigel Huddleston, Conservative MP for Droitwich and Evesham, who also described it as "a major part of the local economy".

A statement released by the joint administrators said the company had faced "significant financial and operational challenges over the last few years".

It said the failure of its wastewater treatment plant in June 2025 caused "significant disruption", cost about £2m and led to a lasting increase in running costs. In August 2026, drought-related supply issues also affected the company's trading.

"Ongoing losses, negative cash flow and uncertainty over future demand put the company's finances under increasing strain," said Timothy Andrew Higgins, Edward Williams and Helen Wheeler-Jones of administrators PwC.

They added that directors had explored a number of options to secure the future of the company but "no workable solution" was found.

"A fast-track sale process began in mid-September 2026, but a going-concern sale could not be concluded within the time available," the trio added.

Upon the appointment of the joint administrators on Monday, trading ceased immediately and all employees were made redundant.

They are being supported in making claims to the redundancy payments service.

Huddleston described the closure as "devastating news".

He said he was liaising with the joint administrators and the Department of Work and Pensions to make sure employees were supported.

"The closure of Kane's Foods is devastating news for the Vale of Evesham and, most importantly, for the hundreds of people and families who have lost their jobs," he said.

"I have visited the business on a number of occasions and know just how many local families have relied on it for their livelihoods.

"My thoughts are very much with all those employees who have been affected, and with their families, at what will be an incredibly difficult and worrying time."

He added that it was not clear whether any parts of the business would be sold.

"I am also conscious that the collapse of such a significant local employer could have a knock-on impact on other businesses in the supply chain," he said.

"I will continue liaising with all relevant stakeholders, and my team and I will provide whatever practical support we can to constituents affected by this devastating news."

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