The future of yoghurt production in Leicester has been saved after a major Yorkshire milk supplier stepped in to buy the assets of Rossa Dairy Products Ltd, it was announced yesterday.

A deal was struck for Payne's Dairies Ltd to resurrect the business which was placed into administration in early January.

Commenting on the sale, joint administrator Ravi Sembi, a director in the Leicester office of business recovery specialists Begbies Traynor, said: "I am very pleased with the outcome and delighted at the prospect that this deal will soon create employment in the area again."

Charles Payne, managing director of Payne's Dairies Ltd, added: "We are extremely happy to acquire this well-established dairy products manufacturer which is a welcome addition to Payne's Dairies Limited. We intend to manufacture and produce quality yoghurt in Leicester, which will be a new product offering for our company."

The sale encompassed plant and machinery along with a transfer of the Meynell Road premises.

The business stopped trading before Christmas and 19 employees were made redundant. 

Rossa Dairy Products Ltd, a third generation family firm, dating back to 1896, made both yoghurts and traditional Italian-style ice cream, largely for the wholesale trade.

Ice cream making has now ceased.

For more information about Begbies Traynor, please visit their website here: www.begbies-traynorgroup.com