Bakery manufacturer Frank Roberts & Sons is actively engaged with potential partners and funders about the future of the business, it has confirmed.
The 138-year-old Cheshire-based business – which produces bread under the Roberts Bakery brand as well as speciality bread and sweet treats for supermarkets, coffee shops and more – filed a notice of intention to appoint administrators via law firm Addleshaw Goddard yesterday (6 October).
This, according to the company, is aimed at providing time for Roberts’ management team and experienced third parties to secure the best possible outcome for the firm.
Roberts asserted that its priority is to safeguard jobs, preserve its brands, and place the business on a stronger, more stable footing.
It stressed that it has faced an exceptionally difficult period in recent years, with a devastating fire in June 2023 at its Northwich site resulting in a loss of production capacity and a subsequent fall in market share. These pressures have been compounded by unprecedented inflation since the invasion of Ukraine, rising energy, and ingredient costs, and intense competitor activity.
Despite the huge efforts of everyone involved, these factors have made recovery extremely challenging, Roberts added.
A spokesperson for the bakery commented that “discussions are well advanced with third parties, and we are optimistic about a positive solution in the coming days that will preserve the whole company as a going concern”.
All stakeholders including employees are to be kept on at the company, said the spokesperson, with day-to-day operations remaining unaffected as it continues to trade and fulfil orders as normal.
As of September 2024, the business employed 700 people. Since then, nearly 300 jobs have been put at risk due to a series of strategic decisions by the firm. Six weeks ago, Roberts revealed it was looking to close its speciality bread factory in Ilkeston, Derbyshire, which employs 38 people but was deemed to be “no longer aligned with the company’s future plans” following a comprehensive review. It had already announced it was drastically reducing its workforce in Northwich by as many as 250 jobs. Roberts also operates a biscuit factory in Winsford, Cheshire.
The company’s most recent financial results for the year ended 31 August 2024 showed it had bounced back to profitability thanks to insurance recoveries, although its turnover had dropped by 20.7% to £76.1m.
Roberts previously occupied fourth spot in the list of Britain’s biggest bread brands, but has been surpassed by the skyrocketing Jason’s Sourdough which helped its parent company Geary’s Bakeries record a 37.5% sales leap in 2024.
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