Before it hit difficulties last summer, the firm employed more than 100 staff and supplied more than 1m own-label cakes a week to retailers and caterers from its bakery in Holmfield, Derbyshire.
Severe cash-flow problems
Steve Clancy from MCR, which was appointed as administrator last month, told FoodManufacture.co.uk: “The company had encountered trading difficulties since at least July 2009 and this decline left it suffering from severe cash-flow pressures.
“This was exacerbated by the loss of two major customers during the summer of 2009. However, the severe winter also affected the volume of sales.
"The company was making progress from this difficult period. However, the demise of a key customer in June 2010 left the business with a bad debt in excess of £100,000. By July 2010 it was clear that the position was untenable and MCR was appointed administrator.”
FoodManufacture.co.uk understands that an initial wave of redundancies began in June, and the remaining jobs went after MCR was appointed.
Clancy added: “MCR reviewed the position of the company and actively marketed the business for sale. Although this exercise generated substantial interest it ultimately did not prove possible to achieve a sale.
"As a consequence, Buxton Spa Bakery Limited ceased trading and its affairs are now being wound-up.”