A Bradford fruit and vegetable wholesaler has signed a £1 million contract to supply dairy products for a national chain of hotels.

Paul Venable, managing director of Swithenbank Foods, signed with Hilton Hotel Group's purchase executive Stewart Bowie at the company's headquarters on the Euroway Estate yesterday.

It is a turn around in fortunes for Swithenbank Foods, formerly known as J W Swithenbank, which was taken over and renamed by Leeds firm Wilton Investments in January.

The new deal - Swithenbank Foods has already been supplying fruit and vegetables to the chain for six months - will mean the company's fleet of 40 vans and truck will deliver to more than 80 hotels in England and Wales including the London Hilton Hotel.

Paul Venable said: "This contract represents excellent news for the company and is a significant step forward in our relationship with Hilton. It is a prime example of our ability to achieve cost effective solutions for our customers."

He said the contract was good news for the company's 150 staff in its Bradford, London and French depots and could mean a small number of new jobs will be created.

Stewart Bowie from Hilton Hotels said: "It was the quality, freshness, customer care and distribution which marked this company out and the long term relationship we've enjoyed with the company over the past five years.

"As Swithenbank Foods already supply fruit and vegetables to Hilton, this dairy contract gives us both the opportunity to work even closer together to ensure first class products are delivered to our hotels."

The contract signing was witnessed by Anthony Marshall, the London Hilton's executive chief, and Stephen Buckley, managing director of Buckley Farm Dairy in Denby Dale who are dairy suppliers for Swithenbank.

J W Swithenbank was put in the hands of administrative receivers on January 7 and sold to Wilton Investments on the same day and re-named Swithenbank Foods.

The company, which started in the city in 1891, supplies hotel groups and the catering trade across the UK and has four wholesale outlets in St James's fruit and veg market in Bradford.