STUFF THE WORKERS

Ex-owner of Bernard Matthews sold out its pensioners in insolvency deal

THE former owner of turkey firm Bernard Matthews was today accused of “lining its own pockets” at the expense of pensioners.

Private equity firm Rutland Partners rejected a rescue bid for the business last July, say papers published by the Commons Work and Pensions Committee.

The offer from Chicken King tycoon Ranjit Boparan would have safeguarded members of the pension scheme. A letter from Mr Boparan said Rutland rejected the bid, which would have kissed goodbye to money it was owed. Bernard Matthews was put into a form of administration

Rescue offer was rejected

called a “pre-pack”. It allowed Mr Boparan to make a second swoop, buying the best bits of the business for £87.5million.

Rutland recouped £39million, and two banks got nearly £46million. They were ranked higher priority than the pension scheme, which was owed £17.5million. Administrators Deloitte say the scheme will be lucky to get back 1p in the pound. It was put into the Pension Protection Fund, which steps in when firms go to the wall.

Many workers will end up with a pension pot slashed by 10%. Rutland Partners, owner of Pizza Hut in the UK and electronics chain Maplin, declined to comment.

Work and Pensions Committee chair Frank Field said: “The former owners passed up a better deal for pension scheme members in favour of lining their pockets.”