The administration of The Buffalo Farm Limited has been extended by a further 12 months after a court order was approved.
The Buffalo Farm, based at Boglily Farm Steading near Kirkcaldy, describes itself as Scotland’s largest buffalo farm and butchery.
The company appointed administrators on March 11 last year.
The move followed the company’s launch of a ‘founders’ membership scheme in December 2022, where people invested £10,000 for a variety of perks including £100 a month to spend in the farm shop.
It is expected these investors will see no dividend from the administration process.
Administrators Callum Carmichael and Chad Griffin, insolvency practitioners of FRP Advisory, successfully applied for the extension at Kirkcaldy Sheriff Court.
The Buffalo Farm sale to new Steve Mitchell company
Administrators are tasked with raising as much as possible from a company’s assets to repay creditors.
Through a pre-packaged sale, The Buffalo Farm owner Steve Mitchell bought its assets under his new company called Buffalo Farm Produce.
His new company paid £45,000 for all of the company assets. Employees were transferred to the new entity, allowing it to continue as a going concern.
Another £35,000 was paid to acquire the book of debts owed to The Buffalo Farm.
The new company also had the right to try to negotiate a deal with Allica Bank, which holds a security over the land.
Mr Mitchell previously said starting a new company with The Buffalo Farm assets was the “morally” right thing to do.
He said it meant the herd of buffalo remains intact and ensures continued employment for around 60 jobs.
The original business has subsequently changed its name to TBF Realisations Ltd.
The Buffalo Farm administration extended
The Buffalo Farm had estimated debts of around £3m when it collapsed.
The latest report states that HMRC has subsequently submitted a claim for £574,820 which includes outstanding VAT, PAYE and National Insurance.
Claims from unsecured creditors – including people who participated in the crowdfunding initiative – total £1,229,323.
The report said: “Based on current estimates it is envisaged that there will be no distribution to the unsecured creditors.”
At the time of the progress report, in September, the administrators said they did not anticipate needing longer than the initial 12-month administration period.
However, earlier this month, they successfully sought an extension at Kirkcaldy Sheriff Court.
The administration will now run until March 11 2026.
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