Lack of funding cripples meat distributor
LETHBORG'S Smallgoods has been left with just two employees after it was forced to let go of more than 30 staff over a three-month period.
The news came just one day after the Bradken steel factory announced that almost 100 employees were set to lose their jobs when the factory moves to Queensland early next year.
The St Leonards meat distributor has had to downsize its operation due to a lack of funds and has now closed its on-site retail outlet.
Just months ago, the business would sell about five tonnes of sausages and savs a week, but this has now dropped to about one tonne.
Lethborg's Smallgoods owner Gary Lethborg said that the Tasmanian business once employed up to 50 people.
"Because we've had to make capital repayments and insurance and things like that, it's used all of our working capital, so we've had to cut back in turnover and all the jobs are gone," he said.
"I feel sorry for the staff because some of them were very loyal to us."
Mr Lethborg said he had appealed to the government for financial assistance but State Growth Minister Matthew Groom had said a government loan to support the operation of the business was not feasible.
"The Department of State Growth has made multiple attempts to engage with Lethborg's Smallgoods to try and find a solution to their business difficulties," Mr Groom said.
"In 2011, the government provided some small support to engage a professional to develop a three-year business plan for Lethborg's.
"Very regrettably and in spite of genuine efforts, it was not possible to find a way forward that was acceptable to both Lethborg's Smallgoods and the government."
Mr Lethborg said that his dream would be to reinvent the existing abattoir on the property as a small processing plant for cattle, sheep and pigs instead of having to transport the livestock to Devonport and then back to St Leonards for processing.
He said if the business was unable to get funding in the future, it might mean the end for the fourth-generation company.
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