It has emerged that talks have broken down with one potential buyer for UK food group, Hibernia Foods, which is currently in receivership.

But the receivers, KPMG, say that they are talking to other potential bidders for the company. One of those interested is believed to be a UK-based baking company.

Hibernia Foods makes frozen desserts for the US-based bakery giant Sara Lee. It has a total of six plants throughout the UK and employs a total of 2,000 people.

A spokesman for KPMG said that talks were continuing, although it was not possible to put any timescale on possible developments.