Aulds confirms store closures after liquidation
The family-owned business had hoped to keep all 26 of its Thomas Auld & Sons stores open, with liquidators RSM intending to sell all or some of them as a going concern.
However, following an assessment, the Renfrew, Kilmarnock, Irvine and Ayr stores have closed with the loss of 26 jobs.
All affected staff have been contacted and their claims are being dealt with by the Redundancy Payments Service, Aulds said. Around 155 people continue to be employed at the remaining stores.
Unsustainable loss-making position
Pressure from high street and supermarket competition, as well as increasing ingredient, distribution and wage costs, had taken the retail business into an unsustainable loss-making position, the company claimed.
Following the liquidation, which took place on 2 August, Aulds said its bakery products would still be available as normal in 50 Scotmid stores, as well as from other independent outlets where currently sold.
The liquidation will not affect the group’s two other subsidiary companies, Aulds Bakeries – which manufactures fresh and frozen bakery at the firm’s Greenock site – and Aulds Delicious Desserts, which has a manufacturing facility at Inchinnan.
‘With profound regret’
Paul Dounis, RSM restructuring advisory partner and provisional liquidator said: “It is with profound regret that 26 employees of this historic business have been made redundant with immediate effect, and we are working with local and national organisations to support those employees to process claims as quickly as possible.
“The ongoing pressure facing the high street has been well documented with high profile names entering distressed situations and, unfortunately, this difficult trading environment has led to another blow for the high street.
“The retail business is well known in the sector, and we would ask any parties with an interest in acquiring the business to get in touch with us as soon as possible.”
Last week, Aulds managing director Alan Marr said the liquidation was the only way to protect the rest of the business.
