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Bristol-based Cakesmiths has secured funding from Lloyds Bank amid the Covid-19 pandemic.

The independent bakery, which supplies speciality baked goods on a wholesale basis to high-street coffee shop chains and independent retailers, obtained a six-figure loan with the Coronavirus Business Interruption Loan Scheme (CBILS) from Lloyds Bank.

Cakesmiths said it is now able to run a limited online delivery service for customers and safeguard its 50-strong workforce, most of which have been furloughed due to the effect of lockdown on its coffee-shop customer base.

The loan will help its cash-flow position while most operations are paused, the firm added.

“With the majority of coffee shops across the UK still closed, we know it will be a while before we’re back operating as usual,” said Mike Thorne, director at Cakesmiths.

“Lloyds Bank’s support has been key in helping us navigate the disruption to our supply chain, and retaining our brilliant team, meaning we can get back up and running as soon as demand returns.”

Cakesmiths had a multi-million-pound turnover before the pandemic hit, it added.

“Those in the hospitality sector are among the worst-affected by coronavirus and they make up the majority of Cakesmiths’ customer base,” added Valeriia Matiushina, relationship manager at Lloyds Bank.

“Returning to the level of trading experienced before the pandemic may not be a quick process, but Mike and the Cakesmiths team are now in position to come back strongly when the time is right to do so. We will remain by the side of businesses across all sectors to help them do the same.”

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