Under the terms of the deal, the trading assets and the property assets of Indulgence Patisserie will be held in wholly owned subsidiaries of Volvere.
The sale by administrators RSM Restructuring Advisory meant the business would continue to trade as a going concern, securing the jobs of 30 staff.
Operating in retail and foodservice, Indulgence Patisserie shares a number of customers with Warwickshire-based Shire Foods, Volvere’s pastry products business. It is expected that there will be opportunities for both businesses arising from the sale.
Essex-based Indulgence Patisserie makes products such as cheesecake, gateaux, tiramisu and parfait under the Indulgence brand, along with pastry desserts, coffee shop-style cakes and hot eating desserts.
One leasehold and three freehold properties
The firm was founded in 1988 and operates from one leasehold and three freehold properties in Colchester.
In its annual report and accounts to 31 May 2018, Indulgence showed a 16% fall in turnover, to £6.1m. It made an operating loss of £424k for the year, in contrast to an operating profit of £480k for the previous financial year.
Abigail Shearing and Steven Law were appointed as administrators of Indulgence Patisserie on 20 January 2020.
Law, a partner from RSM Restructuring Advisory, said: “Given the challenging position that the company found itself in, the sale of the business to Volvere is a very positive outcome.
“The creditors will receive a substantial return, the existing staff will retain their jobs, and the business will continue to supply its customer base.”
‘Well-known’ and ‘highly-regarded’
Volvere chief executive Jonathan Lander said he was delighted to be making an investment in a “well-known, highly-regarded” desserts manufacturer. Lander said: “As well as offering the customers of both Indulgence and Shire Foods a broader product portfolio, the investment strengthens Volvere’s manufacturing base.
“We are looking forward to working with Indulgence’s customers and staff and building on their progress to date.”
In September 2018, Indulgence Patisserie was fined £50,000 after the managing director Angus Allan’s mother seriously injured her pelvis falling through fragile ceiling tiles.
An investigation by the Health and Safety Executive found the company had not implemented control measures for employees working near this fragile tile area.