Bakery ingredients supplier BFP Wholesale has announced that it is to save a number of jobs at its Leeds operation.
Administrators were able to complete a partial sale of the business and its assets to Kent Foods, saving 59 jobs.
The site turns over £70m of suppliers’ ingredients to bakeries and food manufacturers. However, unsecured creditors could face a multimillion-pound shortfall following the company’s collapse.
Rob Croxen and Will Wright from KPMG were appointed joint administrators to BFP Wholesale at the start of May, following the withdrawal of its credit insurance that worsened the effect of an extended period of declining revenues.
Upon their appointment, the administrators made a total of 74 redundancies at the Highbridge and Sevenoaks sites.
A newly published statement of the administrators’ proposals revealed that unsecured creditors of the business were owed more than £8.5m at the time of the appointment.
The company was formed into a legal corporation in 1992 and had a varied client base of about 3,500 customers.
It is operated from four sites in Sevenoaks, Highbridge, Leeds and Livingston and has employed 165 members of staff.
The partial sale of BFP Wholesale to Kent Foods was agreed in May, for an undisclosed fee.