Job fears at bakery shop chain

Up to 180 jobs are at risk after bakery group Aulds put its retail arm into liquidation in a move aimed at safeguarding the rest of the business and its 200 employees.

The 26 Aulds stores across Scotland are continuing to trade as liquidators from RSM Restructuring Advisory look at selling some or all of them as a going concern.

Greenock-based Aulds said that they had appointed liquidators at the retail business as part of a turnaround plan to focus on its production and wholesale operations. Aulds products will still be available as normal in 50 Scotmid stores throughout Scotland, as well as from other independent outlets where they are currently sold.

Managing director Alan Marr, a fourth-generation descendent of founder Thomas Auld, said the move was the only way to protect the rest of the business.

“We have invested considerable time and effort over a period of several months looking at alternative courses of action which would allow us to avoid the voluntary insolvency of our retail business. Unfortunately, the losses in our retail business are such that the rest of the group is no longer able to sustain it,” 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.”

The group reported a loss of £430,000 on turnover of £15.4 million in the year to 1 April 2017. It said pressure from competitors as well as rising costs meant the retail business was making unsustainable losses.

The firm employs 200 jobs across two other subsidiary companies, Aulds Bakeries – which manufactures fresh and frozen products at the firm’s Greenock site – and Aulds Delicious Desserts based at Inchinnan.