The jobs of all 25 employees at Manchester kosher bakery State Fayre have been saved after a sale secured the future of the business.
State Fayre Ltd, which acquired the bakery business on Middleton Road in Crumpsall in 2017, was wound up and placed into creditors’ voluntary liquidation earlier this month following sustained financial pressures. These included soaring energy prices, significant increases in the cost of food and other raw materials, and higher payroll costs resulting from increases in the national minimum wage.
The business supplies bread, fresh pastry goods and cakes to supermarkets and other retailers, bars and restaurants, as well as kosher stores across Greater Manchester, Liverpool, Leeds, and Glasgow.
Steven Wiseglass, director and founder of insolvency and corporate recovery firm Inquesta, was appointed as liquidator.
He secured the sale of the bakery’s trade, assets, brand and goodwill to YF & SF Bakery Ltd, a new company established by former State Fayre director Yehuda Fagleman and his wife, Shiri.
Wiseglass said the bakery’s troubles started after the pandemic which had a “significant adverse impact” on its financial position. This continued after restrictions were lifted, as “energy costs increased substantially, with monthly bills rising from £2,500 to almost £7,500”, he added, also noting the rising cost of raw materials and payroll costs.
“Collectively, these factors placed sustained pressure on the company’s finances. The director concluded that it was no longer sustainable to continue the business and sought our advice. The decision was made to place the company into liquidation,” Wiseglass explained.
The sale enables the bakery to continue trading, with all 25 employees transferring to the new business under TUPE regulations. Fagleman was one of the directors involved in acquiring the business in 2017 and will continue at the helm.
“We are in a strong position to take the business forward and give State Fayre a new lease of life, with lots of ideas to expand and re-energise, including new product lines and other ventures,” said Yehuda Fagleman. “We are excited to be able to continue serving the loyal individuals and businesses who make up our customer base.”
State Fayre isn’t the only craft bakery to struggle with rising costs. Coughlans ceased trading on 1 July 2026 resulting in the closure of 31 shops and the loss of hundreds of jobs. Another family-run bakery chain in Norfolk, Kellys Bakeries, was forced to call in liquidators in June and shut its three shops after rising costs wiped out its profitability. The same reason accounted for Routledges The Bakers’ closure of all seven of its shops in Carlisle earlier in the year.
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