Joint administrators, David Chubb, Stuart Maddison and Robert Moran of PwC were appointed on Friday (11th April) and have since secured a sale of the company’s assets to Enact, a leading private equity firm in a pre-pack administration deal. Specialising in Cornish pasties and baked goods, the Cornish company has 65 outlets and cafes across the UK, with many located at train stations. 274 jobs have been saved due to the sale of 34 outlets, however 92 employees will be made redundant as the remaining ‘underperforming’ stores will have to close.
David Chubb commented, “The Company was facing severe difficulties meeting its financial obligations as a result of a combination of factors, and having run out of alternative options, sought the protection of Administration.
Unfortunately, there will be redundancies and we are doing what we can to support these employees.” “This business sale has preserved the majority of jobs and provides some much needed stability for suppliers and employees. The support of these stakeholders has been crucial and I would like to thank them for their support throughout this difficult period.” The ‘pasty tax’, applied in 2012, has reportedly been to blame for the company’s financial troubles. The 20% VAT on warm produce (most of the food sold was hot) only added to the cashflow pressure. Enact have plans to update existing stores and work on ‘product innovation’.