DIRECTORS of a Wrexham dairy firm had "no alternative" but to cease operations and file for administration, it has been said.

The Leader reported on Monday how workers were called to a meeting at Tomlinsons Dairies.

One driver, who did not want to be named, said the staff were told the business was "folding up" and that administrators were being brought in.

PwC (PricewaterhouseCoopers) confirmed on Tuesday afternoon that the firm had officially entered administration.

According to the firm, the dairy experienced significant cash flow pressures and trading results deteriorated over recent months due to factors such as increased energy costs and low commodity cream prices that have impacted the dairy industry.

This resulted in the company being placed into administration, with the redundancy of all employees (except for a small number who have been retained for a short period).

A spokesman for the administrators said: “Despite some improvement in its trading performance of late, Tomlinsons had suffered an accumulation of significant operating losses over recent years which were exacerbated by industry wide issues such as energy costs and a depressed cream price.

"The directors unfortunately had no alternative but to place the company into administration. Our thoughts are with the employees affected and we have ensured a range of support measures are available to them at this difficult time.”

A spokesman for Tomlinsons Dairies said: “The family shareholders, directors and management of Tomlinsons are devastated by the administration and sincerely regret its impact on their customers, suppliers, farmers and employees.

“Key customers, the company and its stakeholders had been in urgent communication over a package of measures to further support the business over recent weeks given the deterioration in Tomlinsons’ financial position.

"Strenuous efforts have been made to try and find a solution but on Friday evening the position proved untenable.

"Consequently the directors had no alternative but to make urgent plans to both cease milk processing and file for administration.

"The decision, taken over the weekend, was time critical to stop milk being delivered that could not be paid for once the prospects of a rescue were known.”

Tomlinsons Dairies was based in Wrexham, with operations in Chester and Shropshire and across the North West and employed 331 people.

The company started 36 years ago and was one of the UK’s largest dairy companies, processing and packaging Welsh, British and Organic milk and dairy products to multiple sectors across the market.

Over the past three years it doubled the size of its Minera dairy, added a distribution hub at Ruabon, and became a dairy with a capacity greater than 200 million litres plus.