Administrator sought for Megans as Ferrari's closes
12 December, 2008
Megans Bakery in Hirwaun, South Wales is seeking to appoint an administrator, director Steve Fogo has told British Baker.
The company filed for admini-stration on Tuesday 9 December, but Fogo said "it is too early too tell" if potential administrator, Resolve Partner, would be hopeful for a buyer for the firm. Fogo confirmed that all 56 employees have been informed and the issue of any wages due to them will be in the hands of the admini-strator, if appointed.Megans was a supplier to the Ferrari's chain of 25 remaining retail shops, which were closed on Wednesday, 26 November. Both businesses were formerly part of Best Bakeries and saved in management buy-outs in June this year. "Personally I'm gutted, said Fogo. It's just a wasted opportunity, as we worked really hard to get other contracts, but we just couldn't continue."South Wales-based Ferrari's closed its 25 remaining shops following advice from the company's financial advisers. British Baker reported in October that the retail chain had been forced to close eight of its most under-performing stores due to the effects of the economic climate. "It was no longer financially viable to continue with the business," said Steve Davies, director of ICD Wales, Ferrari's owner. "It's down to a lack of consumer confidence. I've lost a lot of money, not just what the staff have lost, but I invested heavily to make the company work." Davies said around 100 employees have lost their jobs as a result of the shop closures - 30-40 of them full-time and the rest part-time. ICD Wales was formed as a new firm by Davies in June this year, following the acquisition of 32 of the former Ferrari's Fresh estate, after the 60-shop business went into administration.