Kanes Foods Limited, a Worcestershire-based producer of pre-packaged salads, stir-fry meals and sauces, has plunged into administration with the loss of 662 jobs.
The company, which operates from a manufacturing site in Evesham and supplies major supermarket chains across the UK, said it had faced "significant financial and operational challenges over the last few years".
Financial pressures and plant failure
In a statement, the company said the failure of its wastewater treatment plant in June 2025 caused "significant disruption", cost about £2m and led to a lasting increase in running costs. In August 2026, drought-related supply issues also affected trading.
"Ongoing losses, negative cash flow and uncertainty over future demand put the company's finances under increasing strain," said Timothy Andrew Higgins, Edward Williams and Helen Wheeler-Jones of administrators PwC.
Support for affected employees
Nigel Huddleston, Conservative MP for Droitwich and Evesham, described Kanes Foods as one of the largest employers in its constituency and "a major part of the local economy".
Wychavon District Council has confirmed it will work alongside the administrators, the Department for Work and Pensions (DWP) and other support agencies to help employees affected by the collapse.
Councillor Richard Morris, leader of Wychavon District Council, said: "Our thoughts are with everyone who has lost their job following the collapse of Kanes Foods, and with their families at what will be an incredibly difficult and worrying time."
He added: "Kanes has been one of Wychavon’s business success stories and a major employer in the Vale of Evesham for many years, so its loss is incredibly sad. We stand ready to work with the administrators, our MP Nigel Huddleston, the Department for Work and Pensions and other partners to support those affected and help people find new employment."
The council is also examining the knock-on impact on other local businesses and the supply chain, with Morris noting: "We will be looking carefully at the wider impact on our local economy."
