Earlier this week, Roberts Bakery issued a statement confirming that it is actively engaged with potential partners and funders about the future of the business, with The Grocer reporting that it has been working with consulting firm PwC in recent months.
The news came less than six weeks after the bakery said that it was planning to close its site in Ilkeston, and in the context of major job losses at its Northwich site.
The Northwich facility was the site of a devastating fire in 2023, which the firm said it has struggled to recover from in full. As it stands, Roberts Bakery employs roughly 400 people across Northwich and another site in Winsford.
Explaining the decision to submit a Notice of Intention to appoint administrators, a spokesperson for Roberts Bakery said: "Discussions are well advanced with third parties, and we are optimistic about a positive solution in the coming days that will preserve the whole company as a going concern.
“Day-to-day operations are unaffected, and the company is continuing to trade and fulfil orders as normal.”
Asked about what comes next for the baker, partner at law firm Mayo Wynne Baxter Nick Stockley said that all company decisions will now be taken by the administrators and the directors will no longer have any control over company decisions.
“Roberts’ future will now be determined by what is in the best interest of Roberts’ creditors,” explained Stockley.
“The administrators may try to continue to trade the business as a going concern which will mean it will continue on a reduced scale.”
Stockley then expects the firm’s assets such as its brand name and existing contracts will be sold to the highest bidder.
“The Roberts brand may not disappear entirely from the shelves, but its products will most likely be manufactured by the party that buys the brand name,” he continued.
“The current directors may be able to regroup and buy some of the assets and trade Roberts as a new legal entity, however, it is more likely that a third party buyer will acquire the best assets and Roberts Bakery, as it currently exists, will eventually be dissolved.”
Elsewhere, CEO of food consultancy firm Prof Consulting, Mark Field, said that the Notice of Intention provides breathing room as administrators explore options for the firm’s future.
“Through these challenging times for all involved, the ability to continue to supply trade commitments and keep the brand in the market is essential to have the best chance of selling the business as a going concern and safeguarding local employment,” Field added.
On the topic of redundancies, F&B analyst Julian Wild noted that “serious job losses look inevitable”.
“Roberts has been under pressure for quite a long time, but its situation was made more difficult by the very serious fire it suffered which, despite the insurance claim, resulted in a serious loss of volume,” Wild said.
“The traditional bread category has been a very tough place for many years, as seen by Hovis and Kingsmill.”
Stockley agreed, stating that the redundancy process will begin “quite soon after their appointment”.
As for the expected timing for a sale, he said: “As Roberts has gone into administration, these assets will be sold at a discounted value.
“It seems very likely that any of Roberts’ direct competitors in the industry will be quick to take what they can from Roberts’ decline.”
