South Shields firm JW Rae Bakers has been rescued from liquidation by a division of Sunderland-based Monument Foods.
Aspin Bakery, a division of Monument, has acquired the business, saving 16 jobs.
Having passed retirement age, the directors at JW Rae had been looking for a buyer for over 12 months and had approached RMT Accountants and Business Advisors to put the company into liquidation. RMT issued the particulars of the firm to 10 interested parties, one of which was Monument Foods.
Following the acquisition, Aspin Bakery will move into new premises in South Shields and plans to expand its product range to include cakes and pies, in addition to its existing portfolio of breads.
Monument Foods director David Thompson said the business has increased its turnover from £1m to £2.5m in five years, since its inception in 2004.
“As part of the natural progression of the business, we have been looking to expand our bakery division, Aspin Bakery,” said Thompson.
“JW Rae Bakers has a very strong reputation in the region and we will endeavour to continue the hard work of its directors. This deal offers a real opportunity for Aspin Bakery to grow and expand, both now and in the future.”