State Fayre Ltd, which acquired the bakery business on Middleton Road, Crumpsall, in 2017, was wound up and placed into creditors’ voluntary liquidation earlier this month.
The business, which has roots dating back to 1905, supplies bread products, fresh pastry goods and cakes to supermarkets and other retail outlets, restaurants and bars, as well as kosher stores. Its products are sold across Greater Manchester and in Liverpool, Leeds and Glasgow.
Its liquidation follows sustained financial pressures, including rising energy, food and other raw material prices, alongside higher payroll costs as a result of national minimum wage changes.
Steven Wiseglass, director and founder of insolvency and corporate recovery firm Inquesta on was appointed as liquidator on 13 August.
“State Fayre Ltd traded successfully for a number of years. However, the pandemic had a significant adverse impact on the company’s financial position when restrictions were introduced in March 2020,” commented Wiseman.
“After the restrictions were lifted, the company’s financial difficulties continued. Energy costs increased substantially, with monthly bills rising from £2,500 to almost £7,500.
“In addition, significant increases in the cost of food and other raw materials further eroded the company’s profit, along with increased payroll costs resulting from higher statutory wage rates.
“Collectively, these factors placed sustained pressure on the company’s finances. The director concluded that it was no longer sustainable to continue the business and sought our advice. The decision was made to place the company into liquidation.”
The bakery’s trade, assets, brand and goodwill have now been sold to YF & SF Bakery Ltd, a new company established by former State Fayre Ltd director Yehuda Fagleman and his wife, Shiri.
Fagleman was one of the directors involved in acquiring the business in 2017 and will continue at the helm.
The deal means the bakery can continue to trade with its 25-strong team transferring to the new business under TUPE regulations. TUPE generally means that employees move to the new employer with their existing employment rights retained.
Wiseman continued: “We are pleased to have secured a sale of the trade and assets of the business to YF & SF Bakery Ltd, ensuring the bakery will continue to operate and serve a wide client base across the north west and beyond.”
Fagleman added: “We are in a strong position to take the business forward and give State Fayre a new lease of life, with lots of ideas to expand and re-energise, including new product lines and other ventures.
“We are excited to be able to continue serving the loyal individuals and businesses who make up our customer base.”
JMW Solicitors advised Inquesta on the sale of State Fayre Ltd. Orwins provided legal advice to YF & SF Bakery Ltd. JPS Chartered Surveyors valued State Fayre Ltd’s IT equipment, plant and machinery.
