Peters Cathedral Bakers based in County Durham, has gone into administration. The firm employs over 400 people and has 58 shops and a 50,000 sq ft factory in the North East of England.
Insolvency Practitioners at KPMG said it had been hit by the "rising costs of raw materials, energy prices and an increasingly tough retail environment". They added that they are looking for a buyer for the company which trades as Peters Bakery.
It said the company would continue to trade until a buyer could be found, but warned redundancies were expected.
Peters Bakery, the supplier to some of the UK's biggest supermarkets, had a turnover of more than £12m, KPMG said.
Could this firm have been saved by a CVA?
KPMG are very experienced in CVAs so it may have gone into administration instead because of one or all of the following;
Level of secured debt was high and the lender wanted administrators called in.
A winding up petition had been served against the company so effectively time ran out.
A major creditor stated their intention not to support a CVA.
A potential sale will mean the best result for creditors....