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Administrators from the firm KPMG took control of Russell Hume this Monday and announced the company would remain closed.
The UK's Food Standards Agency (FSA) ordered shutdowns and product recalls at the company's six production sites across England and Scotland last month as the agency investigated allegations of non-compliance with food hygiene regulations, including use-by dates.
The recent product recall and halt in operations has caused significant customer attrition and trading difficulties
"The recent product recall and halt in operations has caused significant customer attrition and trading difficulties, which in turn has led the directors to take the decision to place the company into administration," administrator Chris Pole said in a statement. He added that 266 of Russell Hume's 302 staff were laid off.
This is despite a recent announcement that its Liverpool site was cleared to reopen. In a statement to British media, Russell Hume directors blamed the food safety agency for the collapse of its company.
One major customer, the JD Wetherspoon chain of pubs, cancelled its contract with the meat supplier within days of the investigation starting. Wetherspoon used to buy tens of thousands of steaks from Russell Hume on any given day.
The investigation has since expanded into a major review of meat factories across the UK.
A large buyer of Irish beef, Russell Hume, is now up for sale and administrators have invited offers for the business or its assets "as soon as possible".
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