BBF proposes closure of Sargents Bakeries
The move comes just over a year (August 2021) after the company agreed to acquire Sargents Bakeries Limited, which makes sweet pies, tarts and sundaes, for an undisclosed sum.
The acquisition created a combined business with a turnover of almost £200m, employing 1,700 people. BBF produces ambient cake and chilled desserts of retailer own label, licensed and branded cakes.
Financial difficulties
Sargents reported an operating profit of £1.4m from annual sales of £23.5m in the year to 30 June 2020 – almost £22m of that was from the UK market. However, its latest accounts at Companies House showed sales of £23.8m with a loss of almost -£8m to 26 June 2021.
Jonathan Lill, chief executive of BBF Limited said: “Sargents was experiencing significant financial difficulties prior to us acquiring the business. Since the acquisition in 2021, there have been several external factors outside of our control which have further adversely affected the business.
“As a result, it is with regret that we have announced the proposed closure of Sargents Bakeries Limited. We appreciate that this is a very difficult situation for everyone and we will provide as much support as possible to everyone affected."
Sales
Earlier this year BBF reported sales of £134.8m the year to 26 June 2021, up £89.5m in the previous year. Operator profit rose from £5.5m to £10.2m.
In January 2018, BBF purchased the UK cake and desserts business, based in Hull, of Greencore Group, the international convenience food business.
A year later it secured £40m of investment through a financing facility to support its future growth plans.
BBF was acquired in September 2015 by the private equity investor, Endless
