CHARD'S biggest employer Oscar Mayer has vowed that it's business as usual - despite the failure of a takeover bid.

Deteriorating trading in the UK ready meals industry has been blamed for an investor deciding to pull out of a move to buy the company.

But bosses at Oscar Mayer - which employs about 800 workers - have moved to reassure staff about its future.

Last August it was announced that Icelandic food giant the Alfesca Group, which owns major brands including Lyons Seafoods, was in negotiations with Oscar Mayer about purchasing the Furnham Road factory.

Since then Alfesca had been scrutinising Oscar Mayer's acc-ounts and it was always known that the possible deal would not be completed for several months.

But Alfesca's official website has now confirmed the company has opted out of buying the Chard firm.

A statement reads: "Alfesca has announced that discussions relating to its proposed acquisition of the UK private label ready meals supplier Osc-ar Mayer have been terminated.

"The decision was taken following significant raw material cost inflation in recent months which has impacted the results of the company and caused the trading environment within the ready meals sector in the UK to deteriorate.

"Given the current uncertainties, the proposed transaction would not be conducive to Alfesca creating value for its shareholders at this time."

Oscar Mayer bosses said at the time of Alfesca's interest in the company that it spelt an "exciting development" for the Chard firm and would help to create a "secure and prosperous business."

But now the company's human resources manager, Mike Thomas, in confirming the Alfesca news, has reassured workers, who may be concerned at the latest developments, that service will continue as normal.

"We will continue as we are and it will be business as usual," he said. "The Alfesca buy-out has not happened but we will carry on as we have been doing."

Mr Thomas said he did not think that the news of Alfesca pulling out of buying Oscar Mayer would lead to job losses.

But local workers will no doubt be worried, especially as Alfesca said in its statement that the ready meals sector was "deteriorating" in this country.

Earlier this year Oscar Mayer announced that a jobs review was to be carried out of its supervisory structure following a fluctuating order book, utility costs and an increase in raw material prices.

Mr Thomas confirmed to the News yesterday (Tuesday) that the review had been completed and that there had been 14 job losses.

7:36am Wednesday 7th May 2008

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