Urgent update issued as popular food firm plunges into administration
More than 600 people have lost their jobs.
An urgent update has been issued after a popular UK food firm plunged into administration. Kanes Food Limited produces prepared food products, including pre-packaged salads, stir-fry meals and sauces, operates from a manufacturing site in Evesham and supplies a number of major supermarket chains across the UK.
Based in Worcestershire, the company took the heartbreaking decision after facing "significant financial and operational challenges over the last few years". 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".
In a statement, the company 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.
In the latest development, Wychavon District Council has confirmed it will work alongside the administrators, the Department for Work and Pensions (DWP) and other support agencies to help employees affected by the collapse of Kanes Foods Limited into administration.
Councillor Richard Morris, leader of Wychavon District Council, said the council was prepared to assist those affected by the company's collapse, pledging support to help former employees secure new job opportunities.
He said: "Our thoughts are with everyone who has lost their job following the collapse of Kanes Foods, and with their families at what will be an incredibly difficult and worrying time.
"Kanes has been one of Wychavon’s business success stories and a major employer in the Vale of Evesham for many years, so its loss is incredibly sad.
"We stand ready to work with the administrators, our MP Nigel Huddleston, the Department for Work and Pensions and other partners to support those affected and help people find new employment.
"We are also conscious of the knock-on impact this could have on other local businesses and those in the supply chain, and we will be looking carefully at the wider impact on our local economy."
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