Council among victims of "disruptive" Berwickshire farm business

EXCLUSIVE by OUR AGRICULTURAL EDITOR

It was hailed by a leading local Tory councillor as "a fascinating model" which could bring significant investment and employment to the Scottish Borders.

But following the financial collapse of 'disruptive' agri-business Orrdone Farms Ltd. - part of the Avocet Group of companies - it has been revealed that Scottish Borders Council is among more than 160 creditors claiming in excess of £11.3 million. The chances of recovering any of that money are said to be virtually non-existent.

The spectacular fall of Berwickshire-based Orrdone Farms, formerly known as Avocet Farms, has been well documented in these columns, including the misplaced praise for Avocet's activities by the Parliamentary Review, a publication endorsed by national politicians.

The collapse into liquidation or administration by several Avocet entities from 2020 onwards has left a trail of debt affecting small businesses to Government agencies. Scottish Borders Council has claimed £31,932 although no details of the debt have been given.

It was in October 2018, following a tour of the Orrdone Farms base at Harcarse Hill, near Duns, that Councillor Mark Rowley (Conservative), then Scottish Borders Council executive member for business and economic development, praised the 'pioneering' venture in an interview with the Berwickshire News.

Mr Rowley was quoted as saying: "The model is fascinating, I hope it will bring significant investment and employment to the Borders. Berwickshire has an exceptional reputation for agricultural innovation; from James Small’s revolutionary plough to the innovations of liming and marling that were pioneered here.

“It is exciting that such new and innovative techniques are now being pioneered by Avocet and local farms here in the Scottish Borders almost 300 years later.”

Investors and others were told the methods to be implemented at Harcarse would completely change the face of agricultural production. The operation would install a sizeable herd of Piedmontese cattle in a 'cow palace' with associated high-speed crop production.

Unfortunately, none of the plans came to fruition. And other Avocet initiatives involving the development of a 'wonder' fuel to power vehicles failed to materialise despite millions of pounds invested by shareholders.

And now, for the first time, the insolvent Orrdone company's administrator Emma Porter has published a full list of creditors although many of them have not submitted so-called Proofs of Debt and information relating to their claims. 

Ms Porter has again indicated that Orrdone's former directors Martin Frost, Bob Jennings and Eirlys Lloyd have failed to co-operate with the administrator since her appointment three years ago which means she has been unable to obtain an accurate picture of the company's dire financial position.

Harcarse Hill farm which includes a spacious farmhouse and a high quality designed garden has been sold with the proceeds going to secured creditor United Kingdom Agricultural Lending Ltd. [UKALL]. However, UKALL is still due over £5 million, according to Ms Porter's report, while the garden's designer Lee Ducker is a creditor seeking £18,400.

The complicated scenario facing the various insolvency experts trying to sort out the Avocet disaster includes counter claims from businesses within the group. In Orrdone's case, no fewer than 25 'creditors' bearing the Avocet name are included on the list. Many of those firms have now been dissolved. A huge claim for £10.3 million has come from liquidators of Avocet Infinite (now known as Omega Infinite) which was once the parent company of the group.

Others owed significant sums include Scottish Power [£23,000], Ryecroft Glenton, Avocet's former accountants [£23,000], His Majesty's Revenue and Customs - HMRC [ more than£400,000], Forestry & Land Scotland [£201,000]. Berwick-based Simpson's Malt is due £10,400 while many other local and British-based businesses are named.

The list does not include employee claims from four individuals seeking a total of £33,195. In addition, two redundancy claims amounting to £23,000 have also been lodged.

Ms Porter's report shows the administration is likely to cost several hundred thousands of pounds. There are insufficient assets to cover those costs, and so far any monies have been provided by UKALL.

A creditor who supplied us with comment on an anonymous basis said: "Small business people like me may be seen as gullible or guilty of naivety in providing the Orrdone management with our services. But at the same time I'm at a loss to understand why those in authority failed to see through this scam which has caused serious financial damage locally and farther afield. 

"This lot should have been stopped in their tracks very early on. We are told red flags were raised with Companies House and the Insolvency Service yet no-one from those regulatory bodies intervened. While we were being ripped off local 'dignitaries' were singing Orrdone's praises. How ironic to discover the local council has also been conned".