Fife's award-winning Buffalo Farm goes into administration

Fife’s award-winning Buffalo Farm has gone into administration, and people who sank thousands of £s in the business are set to lose out - but owner Steve Mitchell is bidding to keep it going.

He said debts had mounted to an unsustainable level that left him with no option but to go into administration to avoid the company being wound up.

But, with the backing of new funders, he has been able to submit an offer which will salvage the business and assets of the company via a pre-pack administration sale. That could mean saving the jobs linked to his farm, shop and cafe, and buffalo mozzarella business which first launched in Auchtertool in 2005.

All orders placed will be honoured and delivered, and both the shop and the bothy are able to continue to remain open.

Steve Mitchell broke the news of administration to founder members yesterday (Pic: Submitted)

The news was broken to investors in an email yesterday. Mr Mitchell said administration was his “worst fears come true.”

He said: “Despite my best efforts and determination to bring our vision to reality, we have fallen short due to an economic climate impacted by COVID, wars, soaring energy bills, cost-of-living crises and TB that just weren’t foreseen by anyone. All of this has meant that our debts have mounted to a level we simply could no longer sustain. The last few months have been devastating, both professionally and personally. I have been in discussions with a number of investors, and despite positive discussions, none came to fruition.”Describing himself as “ever the optimist” he admitted to “some pretty dark days, an awful lot of sleepless nights and immeasurable stress on my family as the threat of losing everything looked ever more likely.”His email continued: “After taking advice, I was faced with the reality that the financial position of the company was insolvent. As such, I had to take on board my responsibilities as a director and act in the best interests of all creditors. Taking this into account, I had to make the extremely hard decision to place the company into administration or face the prospect of seeing the business closed by a creditor and subsequently the company being wound up.

“Both options seemed inconceivable to me, but having considered my responsibilities, I believe that carrying out a limited period of marketing to see if any other parties were interested in acquiring the business, then administration seemed like the best route to save the jobs of the incredible team.

“During this marketing period I was approached by funders who were willing to support me if a way forward could be secured. To this end, I have been able to submit an offer which will salvage the business and assets of the company via a pre-pack administration sale. I also hope with time that this route will allow me to figure out a way to honour the faith and support the team and I have received from founders and suppliers.”

Steve Mitchell at the shed where his Buffalo are kept (Pic: George McLuskie)

The move means people who invested thousands - in some cases up to £10,000 - into the Buffalo Farm’s Founders Club stand to lose everything. The club has been shut down by the administrator who will write to them in the coming days. Founders were meant to get discounts and benefits - according to one person they should have lasted for five years.

> Read More: https://www.fifetoday.co.uk/news/people/buffalo-farm-steve-mitchell-on-gut-wrenching-administration-decision-and-a-pledge-to-founders-4552166

In his email, Mr Mitchell said: “It breaks my heart to say that the Buffalo Farm Founders Club, as we know it, has been shut down by the administrator. I can’t begin to explain how much it hurts me to put this down in black and white.

“Legally, we have no choice but at this stage to inform you that your membership and any accrued credits are affected for all founders. This means that all un-spent credits have been set to zero and your membership fee will now not be refunded. I know this will be a massive disappointment, and I am truly sorry. Whilst we all knew this was a possibility, I didn’t believe it would ever come to this.”

The business owner has now accepted the offer of a loan from a friend and founder, and bought the assets from the administrators.

He said: “As part of this, I assure you that I will be looking at every option possible to ensure Founders Club members and the invaluable contributions you have made are not forgotten. It will be a very challenging road ahead, and the priority is to ensure the new company is operating sustainably and self-sufficiently.”

Mr Mitchell said the offer came out of a chance conversation just as he thought he had reached the end of the road.

“I must admit that I had thought I was out of options, and my time with the Buffalo Farm was over,” he said. “I was trying to come to terms with telling my incredible employees they would need to be made redundant, watch as the herd of buffalo were sold off - or worst, destroyed - and the rest of the company broken up and sold off.

“However, a chance conversation with a friend and founder, who, after discussing our plight, has offered to help by providing a loan to buy the company assets from the administrator – on two conditions. Firstly, they want nothing to do with the day-to-day running of the company, and secondly, I take on full responsibility.

“He has convinced me that my vision and my plans for the Buffalo Farm are correct, and it has been more down to timing and external factors than a lack of hard work and misjudgement. I feel a huge responsibility to all who have supported us, and it's not in my nature to walk away, and as such, I have accepted the offer of a loan and started a new company and have bought the business and assets from the administrators and all being well save as much as we can of what we have worked so hard to create.”