Loaf MCR is closing all three of its retail sites across Greater Manchester by the end of the month due to insurmountable cashflow challenges.
The sweet treat specialist, which was founded by Aaron Ryan in 2020 as a “small lockdown idea to raise money for our NHS”, had grown to operate cafés in Salford and Oxford Road and a concession in Selfridges Manchester Trafford. Known for their ‘retro pink’ colour scheme, the locations offer a range of indulgent mini loaf cakes, pastries, and tart slices supplied from a bakery production unit inside a shipping container at Pollard Yard.
In a post on LinkedIn, Ryan said he’d made the “incredibly tough decision” to close his business. “It was fun, bold, unapologetically pink and full of love. But behind the scenes, it’s been a really tough year. And I want to be honest about that,” he wrote.
The founder revealed Loaf MCR had been relying on essential funding that fell through at the last minute, and had been hit with severely delayed payments and invoices, ever rising costs, and mounting arrears. To make matters even worse, the founder claimed a supplier had taken thousands from the business account without permission, which Ryan said triggered “a financial domino effect that was almost impossible to recover from”.
“The cashflow challenges starting May last year meant there were delays in paying important bills, including tips and pension contributions – something I never imagined happening, and something I’ve carried with a huge amount of sadness and guilt,” he added.
Ryan admitted that pressure of leading a bakery retail brand, coupled with some “huge personal challenges” he was facing, had resulted in a full mental breakdown. “I’m not sharing all this for sympathy, I’m sharing it because I think it’s important to be honest about what running a business really looks like,” he expressed. “It’s not just big wins and Instagrammable moments, sometimes it’s unrelenting stress, silence, self-doubt, and sacrifice.”
Despite the decision to close, the founder said he was proud of what his company had become and thanked his “loafly, amazing team”, his suppliers and partners, his landlords, and his customers. “As for what’s next? Who knows… For now we just need rest and time to breathe,” he concluded.
It’s been a difficult year so far for some retail bakery businesses, especially in the North West where both Oddie’s in Lancashire and Grange Bakery in Cumbria announced closure of all their shops. However, both have seen at least one of their locations reopened by other firms – Waterfield’s is rescuing seven Oddie’s sites and Bryson’s took over the Grange-over-Sands outlet.
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