Bakery group puts 26 shops into liquidation

Bakery Aulds has put its shops into liquidation as part of a plan to turn around the business.

The family-owned bakery’s retail business is said to be in an “unsustainable loss-making position” due to pressure from competitors and increasing ingredient, wage and distribution costs. Paul Dounis and Steve Ross of RSM Restructuring Advisory were appointed joint liquidators for the retail arm yesterday.

Aulds has 26 shops employing 180 staff and liquidators are assessing the viability of selling all or some of the stores as a going concern in a bid to safeguard jobs.

The 26 stores will currently continue to trade and Aulds products will remain available in Scotmid stores and other independent shops across Scotland.

The group reported a loss of £430,000 on a turnover of £15.4 million in the year to April 1 2017. Turnover increased from £15.2m the previous year.

The group will now focus on growing its production and wholesale operations at its bakery in Greenock and dessert site at Inchinnan, which employ 200 staff.

Managing director Alan Marr, a fourth-generation descendent of founder Thomas Auld, who opened his first bakery store in 1900, said the action is the only way to protect the rest of the business.

He said: “We sincerely regret that a significant number of our colleagues will be affected by these circumstances, and we’ll be working closely with local job centres and other services to help people into new jobs if necessary.”