FRESH produce supplier Bomfords Group, which became embroiled in a scandal over paying workers below the minimum wage, has gone bust. The West Midlands firm is in administration and Deloitte is looking for bidders for all, or parts, of the business.

Nearly two-thirds of Bomfords’ output – largely peas, beans, spring onions, asparagus and sweet potatoes – goes to Tesco. J Sainsbury and Asda are also among its customers. It was revealed four months ago that Bomfords was using gangmasters who paid below the minimum wage.

Seven gangmasters supplying labour to Bomfords had their licences revoked. The Gangmaster Licensing Authority found that some had been paying below the minimum wage, and that one had been guilty of “physical and mental mistreatment”.

Bomfords was accused of agreeing to pay so little to the gangmasters that it was obvious that workers – many from eastern Europe – were receiving less than the minimum wage. Bomfords insisted that it had followed the rules.

Deloitte has been keeping the business ticking over while buyers are sought. The group employs about 2,100 people, including seasonal labour. It grows and picks its own produce as well as importing vegetables to pack. Its main operations are at Atherstone, outside Stratford-on-Avon, but extend to Worcestershire, Essex and Kent.

Bomfords has made two acquisitions within the past three years. But the cost of building a packing house spiralled out of control: Bomfords originally budgeted for no more than £3.5m, but the cost hit £9m.

Sources said Icelandic-owned Bakkavor, which bought Geest and Hitchen Foods in 2005, considered buying parts of Bomfords last year. G’s Marketing, based near Ely, in Cambridgeshire, is thought to be among about six strong potential purchasers.

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