An award-winning Amman Valley business, established over a century ago, has gone into administration.

Only last year, Frank’s Ice Cream opened a new gelateria and innovation centre alongside their existing manufacturing site in Capel Hendre, with a £500,000 loan from the Development Bank of Wales.

However, a new buyer is now being sought for the business and 14 members of staff were made redundant at the end of last month.

The family-run company has cited rising energy and raw material costs as amongst the reasons it has been forced to enter administration.

Richard Lewis and Alistair Wardell, both of Grant Thornton UK LLP, were appointed joint administrators of Frank’s Ice Cream Ltd on 17 March.

A spokesman for Grant Thornton UK LLP told the South Wales Guardian: “The company, based in Ammanford, operated an ice cream manufacturing business and an ice cream parlour on the same site, employing 38 people.

“The manufacturing business had been loss-making for some time, having been severely impacted by the surge in energy costs over the past year and also a significant increase in raw material costs.

“This, combined with an investment in the ice cream parlour put working capital under pressure and left the company unable to fulfil orders.

“Following their appointment, the joint administrators have been working to secure a buyer for the business and are continuing to liaise with a number of interested parties in acquiring the business.

“Unfortunately, due to a lack of funding, the administrators were unable to recommence manufacturing in the factory and 14 of the members of staff who worked there were made redundant in late March. The remaining employees, who predominantly worked in the ice cream parlour, have been retained whilst that part of the business continues to trade.

“Further information will be made available in due course.”

The family-run company was set up in 1922 by Francesco Dallavalle after he came to Wales seeking work and sold ice-cream from a cart around the Amman Valley.

Having been awarded their first major supermarket contract in 1990, Franks Ice Cream opened their first manufacturing site in Capel Hendre in 1993.

The company went on to launch a diabetic range of ice cream with Morrisons before investing £1.5 million to increase production capacity and then beginning to export to the Middle East in 2019.

They have supplied dairy ice cream, vegan ice cream and ice cream for diabetics to a range of UK supermarkets and global brands.

The South Wales Guardian has contacted Frank's Ice Cream Ltd for a comment.