McGhee's liquidates Fords Bakery

By Anne Bruce

- Last updated on GMT

Soaring commodity prices and energy costs are a major problem for the bakery sector
Soaring commodity prices and energy costs are a major problem for the bakery sector
McGhee’s Bakery Group put its Fords Bakery business into liquidation on 20 March, following continued trading losses, less than a year after it bought the business from administrator KPMG.

Some 35 jobs have been lost at the East Lothian firm, with a further 22 staff set to be redeployed elsewhere within the wider McGhee’s group.

Fords produced bakery and confectionery products and was based in Prestonpans; it had an annual turnover of £5 million and customers included 100 Co-operative stores and food service companies throughout Scotland.

McGhee’s only bought Fords Bakery and certain of its assets out of administration in June last year, via its Scullions Wholesale Bakery subsidiary, an acquisition vehicle. 87 jobs were saved at the time, although 26 production staff were made redundant, together with 41 more who worked at Fords' stores.

Current operation no longer viable

A company spokesperson said: “Unfortunately, and despite considerable efforts, the business continues to show trading losses. It has therefore been concluded that the current operation in no longer viable. Production ceased on March 19 and a creditors’ voluntary liquidation is now in process.”

Around 22 positions will be saved, with staff redeployed within the restructured Fords Bakery business as part of the McGhee’s Bakery Group; a new operational base in is being established in Newbridge, near Edinburgh.

Liquidator Thomas Hughes of Gerber Landa & Gee will hold a creditors’ meeting on April 1.

According to local press reports, Fords Bakery workers came to work last weekend to find the locks had been changed. Kit was being stripped out of the building, which was manned by security guards.

KPMG attributed the June 2010 administration to cash flow problems and rising input costs, and a new report on the bakery sector ​from research firm KeyNote identifies the latter as a particular current problem for producers.

McGhee’s Bakery Group is based in Glasgow and employs around 220 staff. Its three remaining subsidiaries are Ferguson’s Bakery, Wallace Family Bakery and Lamond the Baker.

Related topics Bakery Confectionery & Snacks

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