Lancashire-based bakery chain Oddie’s is seeking a rescue deal or faces closure after an “eleventh-hour withdrawal” by a prospective buyer.
The fourth-generation family-run business (W.H. Oddies Ltd) was founded in 1905 by William Henry Oddie and now employs over 100 people at 13 locations across the area, including a central bakery in Nelson from which it produces a wide variety of bread, savoury pastries, and sweet treats.
The Oddie family called in accountancy and advisory firm Azets alongside Brabners Solicitors to help it find a buyer after struggling against skyrocketing energy costs and reduced footfall.
“Over the decades, [Oddie’s] has withstood two world wars and their food scarcity, the Great Depression, the fall of Lancashire’s cotton industry, the rise of powerful supermarkets, and even the Covid-19 pandemic, which forced us to adapt our entire operating model,” said director Lara Oddie.
Measures the business took during the pandemic included rationalising its product range, staff, and outlets. It had hoped to rebuild, with a focus on keeping costs down amidst inflationary pressures and minimum wage increases, “but with an energy crisis quadrupling costs and footfall declining on the high streets, the Oddie family decided it was time to sell,” the director explained.
The withdrawal by the prospective buyer has left the business with “no choice but to consider closure”, Oddie added, describing the situation as “heartbreaking for us, our devoted staff, and the loyal customers in Burnley and Pendle who have cherished our unique products”.
Tim Mills, corporate finance partner at Azets, added that the firm was exploring sale options of Oddie’s with a “view to securing a future for the group and saving as much of the business and as many jobs as possible”. Any interested parties should reach out to him for more information.
Oddie’s isn’t the only one to struggle against rising costs. Viennoiserie specialist The Modern Boulangerie cited rising costs and low sales due to poor weather as reasons behind its decision to close its shop in Ramsgate while brownie supplier Cake or Death has been forced to diversify its product range to combat a significant increase in chocolate prices.
An increase in National Living Wage and changes to National Insurance thresholds, as announced by chancellor Rachel Reeves last month, will likely compound the situation. The Autumn Budget was met with “profound disappointment” by the Craft Bakers Association which said it underscored a “troubling lack of attention to the needs of small businesses and employers”.
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