UK cake maker More Food, which supplies retailers including Waitrose and Budgens, has been acquired out of administration for an undisclosed sum.

Sussex Bakes has bought the firm in a deal that will save 150 jobs.

Chichester-based More Food has been trading for more than 25 years but went into administration on 1 September blaming the cost of moving to and fitting out new premises and the increasing cost of raw materials following the UK decision to leave the European Union.

Andrew Duncan and Alex Cadwallader, directors at Leonard Curtis Business Solutions Group, were appointed joint administrators. However, immediately following the appointment, More Food was bought by Sussex Bakes.

Duncan said: “The sale of the business via a pre-pack ensures the continued employment of all 150 members of staff and means that work at the bakery can continue as it did before under the new ownership of Sussex Bakes.”

More Food started life when founding director Caron Howe established a coffee shop known as Upstairs Downstairs in the Sussex town.

After demand from wholesalers grew, Howe sold the coffee shop to focus on the supply of cakes and other confectionery products.

At one point, More Food was generating revenues of GBP8m (US$10.4m) per year and relocated to an 8,000 sq ft factory.