WORKERS at Countrywide will face an uncertain future after it was announced that the company has gone into administration this week.

Countrywide Farmers, which has stores in Raglan and Chepstow, had agreed a deal to sell its retail business to Mole Valley Farmers Ltd last October, but this was subject to Competition and Markets Authority (CMA) clearance. On Tuesday (6th March) the CMA announced its intention to refer the process to an in-depth phase 2 investigation, which could take up to six months.

The company, which employs approximately 735 people, is headquartered in Evesham, Worcestershire, and operates 48 retail stores across England and Wales selling a range of farming, equestrian, harvesting and agricultural supplies to consumers. It also has a distribution centre in Defford. No initial redundancies have been made as a result of the administration.

The sale of Countrywide’s highly profitable LPG business was successfully completed on 1st March for a value of £28.75m, and more than 60 employees were transferred to DCC Flogas.

A statement from Countrywide Farmers said: “The board of Countrywide Farmers plc has carefully considered the implications of this extended timeframe and has discussed options with Mole Valley Farmers to continue a transaction through a phase two process. After receiving extensive professional advice, the Board has concluded that it will be unable to meet its financial obligations for this extended period of time.

“It is with significant regret that the Countrywide Retail business which trades from 48 stores and employs over 700 staff will now face a very uncertain future."

David Pike, partner at KPMG and joint administrator, commented: “Following the recent CMA announcement, the proposed retail transaction cannot proceed. Unfortunately, given the significant trading difficulties and cash flow pressures, this has led the directors to consider their options and take the difficult decision to place the company into administration.

“It is our intention to seek a purchaser for the business in whole or part and we have appointed Hilco Capital to assist in running the stores whilst we explore and develop available options. We encourage anyone who has an interest to contact us immediately.”