Administrators called in at Heather Mills' Peterlee factory

The vegan food business founded by businesswoman Heather Mills and operating in Peterlee, has gone into administration

Ms Mills, ex-wife of Beatle Paul McCartney, launched VBites in 1993. According to Companies House she resigned as director on July 31, 2023.

In 2018 she bought the former Walkers crisp factory in Peterlee's North West Industrial Estate. Ms Mills, originally from Washington, said the factory would expand her vegan food range and that she wanted to create jobs in the region.

Rising energy prices and raw material costs have been blamed for the collapse.

VBites produces plant-based alternatives in the meat, fish and dairy free sectors.

The BBC has reported that Ms Mills as being devastated at the news and paid tribute to her team who have put "blood, sweat and tears" into the business over 30 years.

She added: "This is extremely distressing for me on a personal level but also for my wonderfully loyal and hard-working staff."

She said she had personally invested "tens of millions of pounds into the business" and offered "every solution I feasibly could to keep it going, but sadly mine and my staff's efforts have been thwarted".

Administrators from Interpath Advisory were appointed on December 11. Apart from Peterlee, VBites operates a factory in Northamptonshire.

Interpath say trading will continue in Peterlee while it looked for someone to buy the business, and that 29 members of staff remain there for now. However, 24 staff across the business have been made redundant.

James Clark, managing director of Interpath Advisory, said: "VBites is one of the UK's leading manufacturers of vegan food products but unfortunately, and in common with many other companies across the food manufacturing sector, had seen trading impacted by rising commodity and energy prices."

VBites had grown along with demand for vegan products. The company acquired supplier Redwood Wholefood in 2009.

According to the Vegan Society, there are approximately 700,000 vegans in the United Kingdom and that vegan food is also popular with vegetarians.

However, in May sausage makers Heck announced that its range of meat-free products would be cut from 10 down to two. In 2023 sandwich chain Pret A Manger has closed half its vegetarian and vegan-only outlets.