Hand-iced biscuit specialist Biscuiteers has avoided administration through a pre-pack acquisition deal made by its founders and members of the management team.
The change of ownership of business and assets to a newly-formed company follows a recent funding options review undertaken by Biscuiteers with support from Interpath Advisory and completed by Will Wright and Chris Pole from Interpath as joint administrators.
Biscuiteers’ restructuring helps safeguard around 160 jobs and ensures the long-term future of the brand, it said. The London-based firm appeared to be crumbling in the face of rising production, distribution, and administrative costs, with latest accounts filed to Companies House for the year ended 30 April 2024 showing losses of just over £1m despite increasing turnover by 7% to £11.1m – this followed a £382k loss in FY2023.
The management buyout at Biscuiteers is also being backed by new investment from Matt Scaife, the partner at Irish private equity firm Causeway Capital who spearheaded the rescue of Patisserie Valerie in 2019. Scaife is to join co-founders Harriet Hastings and husband Stevie Congdon on the board, along with newly appointed CEO Francesca Pittaway and other existing directors.
All staff are being transferred to the new company with operations continuing as normal, confirmed Biscuiteers, which added that customer orders, vouchers, and loyalty points are unaffected and will continue to be honoured in full.
“This transaction represents a significant milestone for Biscuiteers,” commented Pittaway. “With a strengthened balance sheet and backing of the newly formed company we are ideally positioned to accelerate the brand’s growth. I am genuinely excited to continue working alongside Harriet and the rest of team as we embark on the next chapter of Biscuiteers’ journey”.
Will Wright, UK CEO of Interpath and joint administrator, said: “We’re pleased to have concluded this transaction with Biscuiteers which puts in place a stable financial platform upon which the business can continue to scale. We wish everyone at the company all the very best for the future”.
Since being established in 2007, Biscuiteers has grown to operate a purpose-built manufacturing site in Wimbledon with a capacity for making over three million biscuits per year. It also has two retail outlets – aka ‘Icing Cafés’ – in London’s Notting Hill and Belgravia areas, where customers can learn how to ice like a Biscuiteer.
The business started out creating bespoke biscuits, including for luxury fashion brands such as Yves Saint Laurent, Cartier, Karl Lagerfeld, Christian Dior and Net-a-Porter, before expanding its range with brownies, macarons, chocolates, and gift hampers. In addition to direct sales via its website and cafés, the brand is stocked in retailers including Selfridges, Liberty, Harrods, Ocado, and Hamleys, and also partnered with online greetings cards supplier Thortful last year.
Biscuiteers achieved B Corp accreditation last month, which it said reflecting its commitment to social and environmental responsibility, transparency, and responsible business practices.
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