The Durham-based bakery chain and wholesale supplier is one of the UK's biggest bakeries, employing 400 people.
It has a 50,000 sq ft state-of-the-art bakery on Durham's Dragonville Industrial Estate as well as 58 shops in the Northumberland and the north Yorkshire area.
KPMG’s Northern head of Restructuring and joint administrator Mark Firmin is keeping all 58 of the £12M turnover company's shops open while looking for a buyer.
A KPMG spokeswoman told FoodManufacture.com that it was “business as usual” at Peters.
Family-run Peters Cathedral Bakers – trading as Peters Bakery – blamed the tough retail environment and rising energy and commodity prices for its problems.
Mark Firmin, said: “These factors, along with reduced volumes with its wholesale customers, has led to the failure of this 46 year old family business.”