THE jobs of 85 workers at Tyneside pie-makers Tindale & Stanton have been saved following a management buy-out.
The Burnopfield firm collapsed a fortnight ago for the second time in a year after suffering cash-flow problems. Administrators had cut 25 of 111 jobs while they carried on trading the company.
It was owned by Yorkshire entrepreneur Arthur Harris whose other business, Scarborough-based Bakery Products, had gone into administration at the same time and shut with the loss of around 100 jobs.
But yesterday administrators The P&A Partnership announced that a consortium, Star Cottage Bakery, set up by four former managers at Tindale, had taken over the Tyneside business.
Administrator Andy Wood said: “We are pleased to have been able to sell the business as a going concern, particularly as the buyers are former employees. The quick sale of Tindale & Stanton is an endorsement of the rescue process that an administration enables.”
Another former director of Tindale & Stanton claimed last week: “It was potentially an absolutely storming business. We had lots of sales coming in and the forecast showed superb profitability for August/September.”
In a separate deal, two bakery shops in Harrogate which were owned by Bakery Products Ltd, Scarborough, have been sold to a new company, Howards Bakery Ltd, saving 16 jobs.
Another of Harris’ businesses, the 20-strong Ugo chain of budget supermarkets, also went into administration earlier this year and was later sold to Poundstretcher.
Tindale & Stanton, whose pies and savouries are well-known at cafes and shops, went into administration last November after cash-flow problems following the loss of a deal to supply Netto stores.
Its latest problems follow that of Durham- based Peters Cathedral Bakers. Administrator KPMG said yesterday it is continuing to trade the business while it looks for a buyer.
KPMG shut three of its shops last Saturday with the loss of 17 jobs. In total the business employs 403 people and has 58 Peters Bakers stores.
KPMG said it is in talks with a number of interested parties about the sale of all or part of the business.
The 46-year-old business had a turnover or around £12m last year, but found the retail slump, coupled with rising commodity and energy prices, caused cash-flow problems.
Tindale & Stanton was owned until last November by managing director Peter Frankland, who formed Hobson Foods in 2008 to buy the assets of Tindale & Stanton, which had suffered falling sales for some years.
Tindale & Stanton was founded by neighbours William Tindale and Ernest Stanton in 1974 and was sold in 2003 to its management team when they retired.
It had seen strong business and its sales grew to £11m and its workforce to about 300 before a sales fall in the recession.