Lees Foods has decided to take legal action against the people from whom it bought Patisserie UK - a specialist bakery business that went into administration in March under Lees’ ownership.
Coatbridge-based Lees, which is known for its macaroons, tea-cakes and snowballs, said in a statement that, after taking legal advice, it believed there was a good basis for a claim against the vendors of Patisserie UK under “warranties given at the time of acquisition”.
Lees bought 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.
Lees put Patisserie UK into administration in March 2009 after its major customer - Costa Coffee, which accounted for 75% of its sales - switched to another supplier.
In its 2008 annual results, published last month, Lees reported that sales from its two main businesses - Lees of Scotland and Waverley Bakery - were up 8% to £16.12m.