US-based Schwebel Baking Company has decided to shut down and plans to start a liquidation process after failing to secure new financing or a buyer for the business.

In a statement, the group said it plans to continue operating through the weekend of 4 July when the US marks its separation from the UK.

However, Schwebel then intends to wind down operations “in an orderly fashion” through the remainder of the summer.

The Ohio-based company cited “significant operational and financial constraints” for the decision.

It pointed to aging manufacturing facilities, “costly” labour contracts and pension obligations. The baker also blamed changes in consumer trends that have reduced demand for “traditional” bread and bakery products.

Schwebel said it had explored “all financing and strategic alternatives” in an effort to keep the business running, including a potential sale of the company and its operations.

The company also sought a temporary deferral of some of its pension obligations to preserve liquidity for “essential improvements” to its manufacturing sites, it added.

However, Schwebel said it was unable to execute a “viable going-concern sale” or secure additional liquidity and investment. Following a review of the options available and financial position, the firm’s board opted to pursue an operational wind-down and liquidation.

CEO Steve Cooper said: “The Schwebel’s brand has been known for the highest quality of bread, buns and other bakery products for over 100 years and we are devastated to reach the point where liquidation is the only remaining option.

“We’ve worked with our advisors for several months to identify a buyer or investment source, however despite significant efforts to adapt to changing market conditions and secure additional investment, the company was unable to establish a sustainable path forward.”

Schwebel’s history dates back to 1906. The company produces breads, buns and rolls under brands including Schwebel's, 'taliano and Millbrook.

According to its website, the family-owned wholesale baker has two baking facilities and 20 distribution centres across Ohio, Pennsylvania and New York.

The wind-down will cover Schwebel’s bakeries in Youngstown and Hebron. It will also include its retail stores and distribution centres across the tri-state area.