Urban Legend has lined up administrators ahead of an expected pre-pack deal for the healthier sweet bakery brand.
According to The Grocer, founder Anthony Fletcher is working with insolvency and recovery firm Leonard Curtis to market the company following the late collapse of a recent funding round.
“There have been multiple offers for the IP, and the business will shortly enter administration with the expectation that this will be sold,” commented Fletcher.
Urban Legend uses patented air frying technology to reduce the sugar, fat, and calories of its filled and ring doughnuts by between 30% and 75% compared to deep-fried alternatives. Sweet pastries and more recently cake pots have been added to its range, with all products coming in at 200 calories or less.
The London-based company has received significant backing from investors – including venture capital arms of both Mondelēz International and Samworth Brothers – since it was launched in 2021 via a £3m seed funding raise.
In successive years it welcomed £7m in venture capital to accompany a Tesco roll out, and completed a £3m investment round led by Perfect Redd which featured funds from the likes of England football captain Harry Kane and former Welsh rugby coach Warren Gatland. SnackFutures Ventures then purchased a minority stake in Urban Legend last October.
Latest unaudited financial results for year ended 31 July 2024, posted to Companies House under its registered business name Believe in Science Ltd, showed a £4.7m loss accrued since FY23 to leave it £11.5m in the red. It employed 46 staff including directors.
British Baker has reached out to Leonard Curtis for comment.
Having previously expanded distribution to have products sold in standalone bakery cabinets at around 200 Tesco and Sainsbury’s stores in the UK, the Urban Legend range is currently no longer available at the retailers.
The news is the latest blow for sweet treat category disruptors, with HFSS-compliant cookie brand Jnck Bakery entering liquidation earlier this month due to insurmountable debts.
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