400 jobs at risk as Peters Cathedral Bakers goes under
Tuesday 12 June 2012
A bakery wholesaler and retailer that supplies some of the UK's
biggest supermarkets collapsed into administration today putting more
than 400 jobs at risk.
Peters Cathedral Bakers, which trades as Peters Bakery, owns 58 retail outlets across the north east of England, a 50,000 sq ft factory and a direct mobile sales operation which all face closure.
The family-run business, founded by Peter Knowles in 1966, has been hit by rising costs of raw materials, energy prices and an increasingly tough retail environment, administrators KPMG said.
The administrators will continue to trade the Durham-based company while they seek a buyer but warned redundancies were expected in the coming days.
Peters Bakery's main competitor, Newcastle-based Greggs, has aggressively expanded its business despite challenging conditions, with a record 98 stores opening in 2011.
Mark Firmin, KPMG's northern head of restructuring and joint administrator, said: "The challenging retail environment on the high street is exacerbated by rising commodity and energy prices squeezing margins in this sector.
"These factors, along with reduced volumes with its wholesale customers, has led to the failure of this 46- year-old family business."
The company's main factory in Durham was refurbished and kitted out with state-of-the-art equipment after a devastating fire seven years ago.
Its most recent financial statements show that Peters Bakery has a turnover of more than £12 million, KPMG said.
- 1 Kylie Jenner challenge: Bizarre lip suction device inspired by Kardashian sister goes viral
- 2 Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
- 3 Katie Hopkins and The Sun editor are reported to police for incitement to racial hatred following migrant boat column
- 4 Bruce Forsyth backs assisted dying campaign: 'If I had Alzheimer's or dementia I would do something about it'
- 5 Giorgio Armani criticises the way some gay men dress saying 'a man has to be a man'
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
iJobs Money & Business
£30 - 35k (DOE): Guru Careers: We are seeking a Pricing Analyst with experienc...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£21000 - £24000 per annum: Ashdown Group: The Ashdown Group has been engaged b...
£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, int...