84 jobs lost but 240 saved from 'pre-pack' sale of assets to Prestige Bakeries
Mathiesons Foods has gone into administration with the loss of 84 jobs.
It's the second time in two years the 140-year-old bakery has fallen into administration.
In May 2010 a consortium of Scottish bakers agreed a deal to bring Mathiesons out of administration, which saved 340 jobs.
The new company, Mathiesons Foods Ltd, called in the administrators on Friday after running into cashflow difficulties.
Administrators KPMG were appointed on Friday and immediately completed a ‘pre-pack’ sale of part of the business and certain trading assets, including eight retail outlets, to Prestige Bakeries Limited, saving 240 jobs.
No details on the value of the sale have been disclosed.
The eight retail outlets saved in the deal are based in Camelon, Falkirk, Denny, Elgin, Grangemouth, Gretna, the Gyle Shopping Centre in Edinburgh and a store at the Larbert headquarters.
KPMG said it had no option but to close the remaining retail outlets, resulting in 84 redundancies.
The joint administrators have also been appointed to the company’s five subsidiaries, Firbank Holdings Limited; Firbank Bakery Limited; East End Bakery Limited; James Allan (Bakers) Limited and J. Allan (Bakers) Ltd.
These companies are either dormant or hold leasehold interests only.
Blair Nimmo, joint administrator and head of restructuring with KPMG in Scotland, said: “The early sale of the business is a positive outcome from what has been a difficult period for the company and its staff.
“The business was in a severe degree of distress but the deal represents the best outcome for the company’s creditors.
“We wish Prestige Bakeries Limited and the retained staff every success for the future.”
Mathiesons operated as a traditional wholesale and retail baker from its headquarters and production facility in Larbert.
Mathiesons Foods Ltd was formed in 2010 by a consortium of Scottish bakers including James Allan Bakers, and Paul Allan, owner of Murdoch Allan Bakers, along with former Food Partners chief executive David Kilshaw.
Lloyds Banking Group funded the consortium in 2010 to take Mathiesons out of administration.
The company had 28 retail outlets, most of which are located across central Scotland.
The joint administrators said the retail units in particular had been running at a loss, and cash flow difficulties and being unable to access funding had led to the company once again going into administration.
Stores closing: Bo’ness (South Street & Dean Road), Stenhousemuir, Bathgate, Stirling, Kirkintilloch, Falkirk (Callendar Square), Dunblane, Armadale, Grangemouth (Charlotte Dundas Court), Edinburgh (Ferry Road, Montagu Terrace, Oxgangs Broadway & Boswall Parkway), Kilsyth, Liberton, Mayfield, Lennoxtown, East Kilbride (Colvilles Park) and Kilmacolm.