West Cornwall Pasty Company has appointed BDO to conduct a strategic review of the company, it has confirmed to British Baker.
The review, by the accountancy and business services firm, could lead to the sale of the business, for a sum in the region of £30m, according to The Sunday Times.
A spokesperson for the West Cornwall Pasty Company told British Baker: “We have appointed BDO to advise the board on a refinancing of the business in order to support future growth. Our discussions with BDO are at an early stage and no decisions have been finalised at this time.”
BDO has previously backed other food-related businesses, including Individual Restaurant Company, owner of the Piccolino brand.
Earlier this year the company blamed the pasty tax for a fall in profit, revealed in its report for the 53-week period ended 1 March 2013. Turnover fell from £23.9m to £21.3m year-on-year, and EBITDA was reported as £1.65m, down from £2.26m in 2012. Gross profit was £15.3m, a decrease of just under £2m from £17.3m during the same period last year.
According to the report, the reduction in turnover was due “principally to the imposition for a standard rate of VAT” from 1 October 2012 on hot takeaway products.
Since 2007, the West Cornwall Pasty Company has been owned by Gresham Private Equity, and employs around 400 staff.