UK Bakeries, a family-owned wholesale bakery based in Leicester specialising in baps and rolls, has called in administrators, blaming increased demand for wraps.

The business was established in 1939 as G W Kirton & Sons, employing approximately 60 people. It was acquired in December 2002 and changed its name to UK Bakeries in June 2003.

The company said it formerly supplied sandwich breads, but when Marks & Spencer changed its range to focus more on wraps in 2006, the rest of the market followed its lead. Certain key customers reduced their orders by up to 60% with very little notice, it said.

The impact of this reduction in turnover resulted in the company starting to return significant losses.

John Kelly and John Lowe of corporate recovery specialist Begbies Traynor have been appointed administrators. Lowe commented: "We are assessing the future of the business with a view to exploring the possibility of a sale as a going concern."