Rathbones goes into administration

A BAKERY group with 1,550 staff was in administration today after failing to overcome tough trading conditions and a fire at one of its factories.

Rathbones Bakeries, which had sales of £100m last year and supplies Tesco and Morrisons, suffered the blaze at Carlisle in February.

Corporate recovery experts from KPMG were appointed on Friday evening and will now attempt to secure a sale of the business while continuing to run existing operations.

Rathbones, which also features Harvestime and Fresha Bakeries, employs 444 staff at its Walsall head office, with another 409 at Leicester and the remainder at Peterborough, Carlisle, Wigan, Wakefield and Middlesbrough.

KPMG partner Richard Hill said: 'We believe we can achieve a sale of the business as a going concern and we have already received expressions of interest from potential buyers.

'We are confident, that with the support of the staff, suppliers and customers, we will be able to achieve a positive outcome.'