Troubled bakery group Bakery Services is set to sell its two operating divisons, Inbake and Don Millers, to current directors Keith Bentley and David Drury for £50,000.
The in-store bakery and café franchise company, which has has not reported a profit since 31 March, 2000, had previously told shareholders it was looking at ways to "enhance shareholder value". It had also considered winding up the company but did not believe this option would generate any value for shareholders, it said last week.
It had not received any firm expressions of interest from third parties, apart from Bentley and Drury, it added.
The Alternative Investment Market-listed company’s plans are conditional upon the approval of shareholders in a general meeting, due to be held on 28 December. If approved, corporate financier Andrew Hunt would join the board as an additional director, tasked with identifying and securing investments in line with the company’s new proposed strategy.
This strategy was to invest in, or acquire one or more businesses operating in the business process outsourcing sector within the UK, it said in a statement. Business process outsourcing encompasses the contracting of back- and front-office tasks, such as payroll, payment processing, information technology, data preparation, mailing and call centres.
Bentley told British Baker that he was unable to comment further before the shareholders meeting.
Bakery Services’ Inbake division manages and operates in-store bakeries, trading from concession sites, mainly in Co-op supermarkets. It currently employs 88 people and operates nine bakeries. Three of those sites are at risk, directors have suggested. The division reported a £51,873 profit for the 12 months to 31 March, 2007.
Don Millers is a retail bakery and sandwich café franchise business. It has one one managed unit and six franchisees. The division reported a £200,717 loss for the 12 months to 31 March, 2007.