Star Cottage Bakery has been placed in administration, after failing to turn around its former Tindale & Stanton pie factory in Newcastle Upon Tyne.
Twenty-five of the 84 employees at the bakery have reportedly been made redundant already, while a buyer is being sought for the business.
Star Cottage, which was formed in early 2012 by four former managers at the bakery, acquired the factory from Bakery Products as a going concern, after it went into administration last summer.
The bakery had previously been saved from administration by Bakery Products in 2011.
The administration of Star Cottage Bakery is being handled by PCR LLP.