An abattoir and a meat producer in Gwynedd have ceased trading after going into administration.
Sher Halal Foods and United Halal Foods, based at the Cibyn industrial estate in Caernarfon, have combined debts of almost £650,000.
Administrators SFP, who hope to sell the two businesses, said they employed 35 people and had a turnover of £12m.
The companies set up in 2009 after a previous firm, Cig Cibyn, went into administration.
Daniel Plant, group partner at SFP, said the companies went into administration at the beginning of May due to cash-flow problems.
‘Business and assets sale’
“Despite having substantial turnover Sher Halal Foods Limited and United Halal Foods Limited were both unable to continue trading,” he said.
“We are undertaking a marketing campaign for a sale of the business and assets.”
Mr Plant added the problems faced by the two business at Caernarfon suggested an “increasingly tough environment for the food processing industry”.
The two companies moved to Cibyn in 2009, three months after Cig Cibyn went into administration.
At the time it was reported the sale would result in a major overhaul, designed to improve productivity and raise standards.
In November 2008, farmers’ unions said some of their members were owed thousands of pounds by Cig Cibyn in Caernarfon, with one farmer claiming he was £12,000 out of pocket.
The company went into administration, three weeks after making 51 workers redundant.
