The Brooklands Bakery, previously part of the Euphorium bakery business owned by Tesco, is facing closure.
Samworth Brothers, which acquired the bakery in autumn 2016, is consulting with staff over plans to close the site in Weybridge, Surrey.
Samworth acquired the trade and assets of Euphorium (North London) Ltd, which it renamed The Brooklands Bakery, in October 2016. The business made a loss of £1.4m in the period from then to 31 December 2016, according to documents filed at Companies House.
“With regret we have decided to begin a formal consultation process with our staff regarding the potential closure of The Brooklands Bakery,” a spokesperson told British Baker.
“Despite significant financial investment and the best efforts of the team at Brooklands, the business continues to be loss-making and this is not sustainable in the long term.”
Tesco took a share in the Euphorium business, which included two manufacturing sites and high street bakeries, in 2012, and acquired the remainder in 2015. Euphorium concessions were opened in a number of Tesco stores.
The supermarket giant sold the business in 2016 and converted its Euphorium concessions to in-store bakeries. Samworths took on the Weybridge site, while BTC Investments acquired Euphorium’s Islington factory and the associated high street artisan bakeries.
BTC, which also operates the Soho Coffee chain, currently has six Euphorium sites, but intends to develop the business as a leading artisan retail bakery, patisserie and coffee brand.
As reported in the 2018 Bakery Market Report (available free of charge to British Baker subscribers here), an investment programme of refits to its existing stores and the opening of new outlets is planned.