A restructuring of Sheffield-based bakery chain Forge Bakehouse has allowed it to exit administration, helping safeguard the jobs of its 47 staff members.
The business had been suffering recently from the impact of the cost-of-living crisis and soaring energy bills, leading it to seek the advice of local insolvency and business turnaround specialist Leonard Curtis.
A decision to enter into administration was made, followed by a subsequent restructuring of the business under existing owner Craig Guest and his company CPLG Ltd.
“It is absolutely correct that we experienced operational difficulties in the past few months caused in part by the cost of living crisis and rising energy costs but we are now confident that we have placed this difficult period behind us,” said Guest, who led a takeover of Forge Bakehouse from founder Martha Brown last year.
“It was important to us and we’re proud that we always paid our employees and our suppliers and maintained good relationships even during this extremely difficult period for us,” Guest added.
Founded in 2012, Forge Bakehouse claims to now have a programme of growth set firmly in place, having opened new premises in the Lodge Moor area on the Western outskirts of Sheffield.
This brings its current shop estate across the South Yorkshire city to five, with a café on Abbeydale Road and outlets in Beauchief, Kelham Island, and at Sheffield Train Station.
The business operates a central bakery, supplying its shops as well as wholesale and online customers with a range of breads and pastries that change throughout the week. Products currently showcased on its website include the likes of Sesame, Linseed and Sunflower Sourdough, Focaccia Pizza, Pork and Fennel Sausage Rolls, Almond Croissants, and Vegan Maple Pecan Swirls.
It also gives lessons to aspiring artisan bakers such as Miyo Aoetsu, who went on to create Britain’s Best Loaf 2023 – the matcha green tea-flavoured Brioche Japonais – out of her Kuma-San Bakehouse in Matlock, Derbyshire.
“We are looking forward to further expansion in 2024 and to the creation of even more local jobs,” commented Guest. “We thank all of our loyal customers for their continued support and we’re looking forward to serving them for many years to come.”
Leonard Curtis associate director of restructuring and insolvency Stephen Beverley was appointed administrator along with his colleague Ryan Holdsworth, who worked with MD Law, agents BPI Asset Advisory and accountants Hebblethwaites.
“This is a great result for the business and for Sheffield, where the Forge Bakehouse brand is extremely well known,” said Beverley. “We are particularly pleased that jobs are safe following what could have been a worrying period for the whole workforce.”
Challenging trading conditions have seen several bakery businesses falling into administration this year, although there have been a few that have also been rescued via acquisitions. These include Derbyshire-based Jacksons The Baker and icings and marzipan supplier JF Renshaw Ltd.
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