Unsecured creditors of Muscle Foods Limited are not expected to receive a payout after the online food retailer’s business and assets were sold for £300,000.
Administrators’ proposals filed at Companies House estimate unsecured claims at £8.09m, including £202,621 owed to employees. No distribution to unsecured creditors is anticipated on the information currently available.
Boparan Private Office Limited bought the business and assets on 7 August 2026. The sale allowed trading to continue and seven remaining employees transferred to the purchaser.
Stuart Kelly and Claire Harsley of Mackay Goodwin were appointed joint administrators on 21 July.
Their report describes a business struggling with losses, pressure on working capital and the costs of restructuring. Muscle Foods closed its West Bromwich fulfilment operation and outsourced the service to reduce overheads, but redundancy costs and obligations relating to the former premises added to its immediate financial strain.
Frequent repayments on short-term borrowing also made it harder to pay suppliers and other creditors. Delivery problems created further pressure through the cost of replacement shipments and partial refunds.
The sale followed 36 expressions of interest and four formal offers. Administrators accepted the highest offer, receiving £250,000 on completion, with the remaining £50,000 still outstanding when the proposals were prepared.
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