Roberts Bakery is preparing to enter administration, a move that media reports suggest could lead to several hundred job losses.
The UK bakery chain confirmed to Just Food today (8 October) that the business is “actively engaged with potential partners and funders”, and potential buyers, concerning its future.
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On Monday, Roberts Bakery filed a so-called Notice of Intention (NOI) to appoint administrators.
In a statement posted on LinkedIn, Roberts Bakery said the NOI will “provide time for its management team and experienced third parties to secure the best possible outcome for the bakery firm”.
The company added in the posting that its main priorities are to “safeguard jobs, preserve its brands and place the business on a stronger, more stable footing”.
Roberts Bakery has faced “exceptionally difficult” challenges, it said, including a “devastating” factory fire two years ago, which caused two-thirds of production to be lost for over a year.
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By GlobalDataAs a result of the loss in production capacity, it then saw a fall in market share.
The bakery announced cuts of up to 250 jobs at its factory in north-west England in July, following “unprecedented challenges” in the bread market.
In September, it also set out plans to close a factory in central England.
Moreover, Roberts Bakery said in the LinkedIn post that these pressures have been compounded by “unprecedented inflation” since the invasion of Ukraine, rising energy and ingredient costs, as well as “intense competitor activity”.
The chain added that despite the “huge efforts” of everyone involved, these factors have made recovery “extremely challenging”.
A spokesperson for Roberts Bakery said: “Discussions are well advanced with third parties, and we are optimistic about a positive solution in the coming days that will preserve the whole company as a going concern.
“We are keeping all stakeholders informed including our employees. Day-to-day operations are unaffected, and the company is continuing to trade and fulfil orders as normal.”
