Lees Foods has reached a settlement with the former directors and shareholders of Patisserie UK, which will see the Coatbridge-based firm receive approximately £225,000.
In June this year Lees announced it would be taking legal action against the people from whom it bought Patisserie UK - a specialist bakery business that went into administration in March 2009 under Lees’ ownership.
Lees, which owns the Lees of Scotland and Waverley Bakery businesses, purchased Patisserie UK’s holding company Rock Cake in December 2007 from its directors, who had set up the company in a management buy-out from Enterprise Foods in February 2006. However, anticipated sales did not materialise as forecast, leading to a dispute between Lees and Patisserie UK’s former directors and shareholders.
Patisserie UK was later placed in administration after its major customer Costa Coffee, which accounted for 75% of its sales, switched to another supplier.
Following a “constructive process of discussion” a settlement was reached, with no admission of liability on either side, announced Lees.
The £225,000 sum will be made up of £125,000 in cash and all of the 65,000 Lees ordinary shares issued to the shareholders of Patisserie UK as part of the consideration for the acquisition. The shares have a market value of approximately £100,000.