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Christmas ‘cardpiece ’ joy Offices are final after 2015 festivepuzzle fury of potato empire
by David Laister by Dave Laister Business Editor
Business Editor dave.laister@grimsbytelegraph.co.uk
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dave.laister@gsmg.co.uk
N entrepreneur left dismayed when pledges made has afterbeen the sale of a early £3-million Grimsby payment processing cominvested into making pany were discarded, a has re-emnorthern Lincolnshire ployedcentral scoreshub of staff whoneeds had been left on for the scrap-heap. ofthesome of the UK’s biggest Clive sellers. Kahn enjoyed phenomenal success potato
TRANSFORMATION COMPLETE: Richard Arundel, managing director of potato processor AKP. Picture: Jon Corken
with Cardsave, attracting the interest of Elsham Wold has just become the global giant Worldfor Pay . new headquarters AKP Group, With assurances that itgiant would remain supplier to supermarket business as usual, hechip sold up, only for Morrisons and major assurances toMcCain. be swiped away, and the manufacturer operation closed down the town just 12 A state-of-the-art officein block, months later. temperature controlled potato It led facility to a bleak 2015 for nearly storage andChristmas grading line, 200 employees. But Mr Kahn together with extensions to returned, and after anhandling initial venture under the banner existing areas have just Mainline Payments, been completed, with he thebought out Payzone UK last December. 13-year-old firm headed by Richard A hugemoving office suite on Grimsby’s Europarc Arundel the whole has now been taken, andthe with more than 80 administration back into area people already employed, from York. as well as a workforce The son of Grimsby town centre in two locations in and Freeman Street markets the North West, it grocer David Arundel, who also has rapidly emerged used to act as a potato merchant to EMOTIVE RETURN: Andrew McCann into the market. the area’s fish and chip shops, in the Grimsby office, the familiar joined forces with Suffolk Loyal staff have technology, and Clive Kahn, below left. nothing businessman Bruce Kerr in 1999. but praise for the man, whose The former KP potato storage only interestfurther in the increases onstage Grimsby’s has now been employed, handling 120,000 tonnes businessman Paulput Bentham in 1995, Mr Kahn, “He stoodPark up on at the flagship final facility which has now been town was a business in place. development, will be of arrived potatoesinaGrimsby year. Of that, 35,000 backed by private equity, conferenceEuroparc with the managing director, and substantially developed, was he had bought into tonnes are self-grown, a officially thiswas week by in 2007, in 2010. He remained with withannounced then thatopened the theme ‘no “We have taken two selling years toup get acquired in 2007, when a project eight years growingfor group inmore this region ande’. Commissions, Agriculture and Horticulture theArundel. business “We as chief a few to this,” said Mr got executive began to grow skin finished chang incentives, office earlier, having Development around another years, departing with it on solid site in Suffolk, grant funding forbefore storage and potatoes on the Isle of Axholme. beenthe location, would all stay.” Board chairman chief John Godfrey CBE, a contributing the balance. A major refurbishment ground. grading operations in 2009, and “We wanted to show we could executive of an himself earlier added of North Lincolnshire farmer. built the storage throughout 2010, Recently employees were Andy McCann, Payzone’s head of15 contact produce the required quality Nottingham office, without a single lick of inter national be open for centres, that harvest. Mr Arundel added: “We’re added, with three graduatepaint at the Moss takes We up the story for the modest locally that supermarkets were curto Road HQ, raised concerns, rency have in from 2010 looking forward tocame. opening the traineesaalso part businessman, whoand has created story thatof the company, buying in from Herefordshire, and then the announcement “Eve ryone conve rsihad on potatoes 2011, and the whole project could be seen has as Grimsby’s own modern day new cold store and grading facility specialising in growing, logistics Scotland or even importing,” he giant was put at risk of redundancy, nearly 200 been finished take withon theDickens’ offices just A Christmas Carol. elements, including – the uncharacteristic weather and technical said. “Morrisons backed us with it Travelex. people,” Mr McCann said. Relocation was agronomy The remaining have brought a A46 and we went to Yorkshire Forward now. He said: “Clive sold Cardsave to.World Pay, offered, butconditions the two-hour drive downusthe Founded challenging investment has seen a fleet of sixit impractical “Our desire is to have more (the scrapped regional there was a buy-out phase where the existing made foryear, manybut . the opening by town Mercedes rigs deliver event is just rewards for everyone’s quality potatomanagement producers local to in the development agency) putting stayed business tobrought secure in to “It was uncommutable distance, the to customers, with the an hard work. this site. It would cut down on from the together a plan. We then tied the the final payment the potatoes sale of the following month people left naturally and primary route Morrisons’ packing transport costs. There is still a lot supply chain up and got the business. I joined in that time, when things “The new facility will not only left, right before Christmas, it operationsperspective, near Harrogate.then everyone of potential, itwere will help thefrom an operational funding.” bumpy enable us to meet the demand of was a very emotive time,” he recalled. environmentalcoming footprint and this in first as a consultant. left with Keen toClive cultivate a prosperous our biggest customers, but we’ve That equated to £700,000. With “Clive had no successfully plans to go back into the part of the worldall has the ability to future for targets and expectations met, all also improved the Lincolnshire potato Morrisons’ rapid growth in the industry, but he felt for the guys and girls he potatoes in objectives reached. In the run-up to that ft storage farmers, the 32,000sq quality and freshness of our retail world, the business has been grow some of the best had left. He is a very values-driven, guy and the country, that is what weannounced are he had his departure, which potatoes by reducing facility and 4,000 sq ft two storey propelled quickly, and working set up a business in Grimsby majoring on.” as a very inspirational leader, sent a– whichdecided handling and using office development drew to transportation, with Eastoft-based L Harrison & Continuedthe on page lot of ripples out. latesttwo. cold store technologies.” inspiration from Genesis Office A total of 44 people are now Co, the infrastructure to allow for
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Sir Roger Carr, president of the CBI and Gavin Esler, best known for his role as a presenter on BBC Newsnight, have been confirmed as the guest speakers at one of the region’s leading business gatherings later this year. The CBI Yorkshire and Humber Annual Dinner takes place at Leeds University on October 10. It will be one of the first events with John Fitzgerald, port director for Grimsby and Immingham, as chairman of the region. Mr Esler is an award-winning television and radio broadcaster, novelist and journalist. His latest book, due to hit the shelves next month, focuses on lessons that can be gleaned from leaders in how they tell stories, and will be the subject of his speech to the area’s business bosses, and their guests. For more information about the dinner, which is frequently well represented by the South Bank and features a drinks reception within Parkinson Court, home to the famous Marks & Spencer archive and art gallery, e-mail katya.menhennet@cbi.org.uk or visit http://yorkshire-annual-dinner.eventbrite.com
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£20m milestone passed A FURTHER £4-million of investment across the Search commercial region this last quarter has seen the total funds issued by Finance Yorkshire climb to £23-million. The money, available to firms in northern properties for Lincolnshire in seedcorn, loan and equity linked investments – ranging from £15,000 to £2-million – is there to sale help smallor and medium sized businesses to rent meet their growth and development requirements.
The figure amounts to 224 investments in 183 small and medium sized enterprises since August 2010, leading to more than 4,600 jobs created and safeguarded in the region. In the last quarter alone, the venturewww.humberbusiness.com/ capital and loan fund completed 30 investments totalling more than £4.3 million. commercialproperty Alex McWhirter, chief executive of Finance Yorkshire, said: “We are looking forward to building on these figures and helping more companies achieve growth in the coming months. “We urge established and early stage companies to continue to speak to us to see if Finance Yorkshire can help turn their ambitions into a reality.” Supported by the European Union, it has attracted £30-million investment from the European Regional Development Fund, £15-million from Yorkshire Forward’s Single Programme, and £45-million match funding from the European Investment Bank. For information visit www.finance-yorkshire.com
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