Jobs lost as Cuppa Vending collapses

A vending machine firm in Stourbridge has collapsed, leaving more than 50 people facing redundancy.

Cuppa Vending Ltd, based in Hayes Trading Estate, Folkes Road, Lye, has ceased trading and will formally go into liquidation following meetings with creditors and shareholders on June 10.

The firm has more than 1,000 drinks and confectionary vending machines in the West Midlands, Shropshire and Worcestershire.

The company's entire payroll of more than 50 staff will lose their jobs when the company is wound up, administrators said today.

Nick Rimes, of Bewdley-based insolvency firm Rimes & Co, said spiralling debts were to blame for Cuppa Vending's downfall.

He said: "We have received instructions from the directors of the company to assist them in placing Cuppa Vending Ltd in creditors voluntary liquidation.

"As it stands this looks pretty terminal unless something comes out of the woodwork in the next few days. But there's no interested parties at the moment.

"The company appears to be unable to pay its debts. However we are still trying to get to the bottom of the reasons, the whys and wherefores."

Mr Rimes added employees would be eligible to claim redundancy pay as well as unpaid holiday pay and wages as they were protected by legislation. Claims would be handled by the Government, he said.

Cuppa Vending narrowly escaped going under in 2007 when a buyer was secured at the last minute.

Administrators PriceWaterhouseCoopers had been appointed to sell the business in late 2006.

At the time bosses blamed the "Jamie Oliver effect" which they claimed had led to people shunning caffeine and traditional snacks.

Cuppa Vending was launched in 1977.

The company moved to Hayes Trading Estate in Lye in March 2006.