Lancashire-based Cherrytree Bakery has invested £1m in expansion after setting its sights on doubling turnover in the next three years.
The tray bake business has acquired a 12,000sq ft building next to its Burnley headquarters after securing new contracts with national retailers.
Cherrytree said the expansion will enable it to meet additional demand and strike deals in new markets as it looks to increase turnover to £50m.
“The business has enjoyed a number of years of successful growth and demand continues to be high, so this is a logical step forward,” explained Cherrytree Bakery managing director Mark Beaumont.
“We have a strong order book, enjoy great client relationships, and have significant demand for our range.”
Cherrytree is hoping to start work on the refurbishment of its new building as soon as possible and to bring it online later this year. The company intends to make the facility as energy efficient as possible, and is looking into carbon reduction options.
This year it ran a recruitment drive for 50 new staff after introducing a new weekend shift and a new production line to meet growing demand. It will be recruiting again once the new facility is up and running.
Cherrytree was supported in the purchase of the facility by Barclays.
Shakira Musarat, Barclays relationship director, said: “We are delighted to support Cherrytree Bakery on the next stage of their growth journey. They are an innovative, exciting business with strong social and environmental focus, creating jobs and opportunities in the heart of Lancashire.”
Cherrytree Bakery was founded in 1984 by executive chair Gary Entwistle and expanded rapidly following the coffee shop boom.
In 2020 the business secured a loan to build back up after the coronavirus lockdown forced many of its customers to shut up shop. At the time, Cherrytree said the £250,000 of funding from Barclays through the government-backed loan scheme CBILS (Coronavirus Business Interruption Loan Scheme) had helped to fund operational overheads during the Covid-19 crisis and would enable a fast return to normal trading as hospitality outlets reopened.
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