Wheat prices to blame for baker's demise
North West bakery group Lyndale folds but management buy-out saves 1400 jobs
Troubled bakery chain Lyndale Group has undergone an MBO after administrators
from BDO Stoy Hayward claimed that ‘massive increases’ in wheat and utility
bills led it into crisis.
Lyndale Group had a turnover of £90m to the end of last year but is
understood to have sustained massive losses – including £12m in 2006, reports
the
Manchester
Evening News.
Forty poorly performing stores and Sayers’ head office and factory in
Liverpool were closed yesterday, following the management buy-out, which was led
by former chairman, Sandy Birnie.
Administrator Dermot Power, from BDO Stoy Hayward, said: ‘We’ve sold the
retail element of Sayers and Hampsons, and I’m hopeful that that the team –
which will call their business Sayers the Bakers – will now be able to get back
into profitability.’
Most of the Group’s estate was sold shortly after the administrators were
called in to a management team saving 1,400 jobs, although 450 jobs have gone
with the closure of the 40 stores, head office and Liverpool factory.