Jobs at a historic Manchester bakery have been saved after a sale secured its future. Kosher bakery State Fayre, based in Crumpsall, dates back to 1905.
However, State Fayre Ltd, which acquired the bakery business on Middleton Road in 2017, was wound up and placed into creditors' voluntary liquidation earlier this month following what have been described as 'sustained financial pressures'.
Company bosses said they included 'soaring' energy prices, increases in the cost of food and raw materials and higher payroll costs.
Sale Secures Bakery's Future
Steven Wiseglass, director and founder of insolvency and corporate recovery firm Inquesta, was appointed as liquidator and has secured the sale of the bakery's trade, assets, brand and goodwill to YF & SF Bakery Ltd, a new company established by former State Fayre Ltd director Yehuda Fagleman and his wife, Shiri.
The sale enables the bakery to continue trading, with 25 employees transferring to the new business under TUPE regulations. Mr Fagleman was one of the directors involved in buying the business in 2017 and will continue at the helm.
Wide Customer Base Served
The bakery supplies bread products, fresh pastry goods and cakes to supermarkets and other retail outlets, restaurants and bars, as well as kosher stores. Its products are sold across Greater Manchester, Liverpool, Leeds and Glasgow.
Mr Fagleman said: "We are in a strong position to take the business forward and give State Fayre a new lease of life, with lots of ideas to expand and re-energise, including new product lines and other ventures. We are excited to be able to continue serving the loyal individuals and businesses who make up our customer base."
Financial Pressures Detailed
Mr Wiseglass said the Covid pandemic had 'a significant adverse impact on the company's financial position', which continued after restrictions lifted.
"Energy costs increased substantially, with monthly bills rising from £2,500 to almost £7,500," he said. "In addition, significant increases in the cost of food and other raw materials further eroded the company's profit, along with increased payroll costs resulting from higher statutory wage rates."
"Collectively, these factors placed sustained pressure on the company's finances. The director concluded that it was no longer sustainable to continue the business and sought our advice. The decision was made to place the company into liquidation. We are pleased to have secured a sale of the trade and assets of the business to YF & SF Bakery Ltd, ensuring the bakery will continue to operate and serve a wide client base across the north west and beyond."
