02.03.04
Circa £2 million deal retains Furniss Foods in Redruth

A £2 million funding package put together by Finance Cornwall has retained the Furniss Foods business in Redruth and averted its possible closure.

Furniss Foods, which currently employs 150 people and is renowned for its traditional Cornish Farings biscuits, was put into receivership a month ago after the failure of its parent company, and is now being returned to independent Cornish ownership.

Finance Cornwall, which has £20 million available to invest in Cornish businesses and is part-funded by Objective One European funding, pulled together a package worth just over £2 million, and is investing £550,000 of its own money in the business.

Robin Teverson, chief executive of Finance Cornwall, said: “Finance Cornwall is here to work with others to make deals happen and our fund managers have been working flat out to pull this together. We’re delighted to have helped secure the future of the Furniss name in Cornwall, where the company has been trading since 1886, and we’re confident it has a bright future.”

Darren Gowling, Finance Cornwall’s investment director, led on the deal. He said: “This is the largest single investment Finance Cornwall has made to date and underlines our commitment to support and develop Cornwall’s indigenous businesses. It’s a very creative deal and involves us providing a combination of debt and equity finance from all three of our funds.”

The deal will see a new management team brought in to run the business alongside the existing management. Furniss has successfully diversified into the snacks market and the ingredients sector, and has a healthy order book.

The deal is supported by City Invoice Finance, a factoring and discount invoice company, asset finance from Davenham Trust Plc, and Barclays Bank.

The company is to apply for Regional Selective Assistance from the South West Regional Development Agency. The RDA guided the company on what steps it needed to take to find a new buyer.

Ian Connell, who has held positions as sales and marketing director of Rowntree, commercial director of Golden Wonder and was an international director of consumer group Dalgety, will manage Furniss Foods alongside the existing team.

Ian Connell for the new owners said today: “Furniss has outstanding local reputation in the South West, supplying quality products to quality customers, backed by quality suppliers.  A Committed, loyal and skilled work force will ensure that Furniss expands into the future.”

Finance Cornwall’s funds are managed by Alliance Fund Managers Limited, which is regulated by the Financial Services Authority in the course of investment business.

Editor's notes:

Robin Teverson is available for interview today by contacting Jason Clark in the first instance on 01872 276276.

Finance Cornwall is the Truro-based business finance company offering a range of investment options to businesses in Cornwall, whether starting up, growing, buying or selling. It provides loans and investments from £5,000 to £650,000.

Finance Cornwall is funded by the Objective One European Regional Development Fund, Barclays Bank and Cornwall County Council.

For more information contact:

Jason Clark, Deborah Clark & Associates Ltd, 01872 276276, 07980 834368, jason@dclark.co.uk or Robin Teverson, Chief Executive, Finance Cornwall, 01872 272288, robin.teverson@financecornwall.co.uk.

Jason Clark
Communications Adviser
Objective One Partnership Office
Castle House
Pydar Street
Truro TR1 2UD
Tel: 01872 241379
Fax: 01872 241388
objectiveone@cornwall.gov.uk

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