SEVERAL potential buyers have come forward to rescue a wholesale bakery which went into administration last week, it was revealed last night.
Riverside Bakery, in Middlesbrough, has been trading for more than 25 years but has suffered badly through the economic climate, resulting in it calling in administrator Baker Tilly.
The jobs of its 35 workers hang in the balance while the search for a buyer is carried out.
Last night, joint administrator Mark Ranson revealed a number of companies interested in buying the bakery had come forward, with some visiting its site at Middlesbrough’s Riverside Park.
The company is a wholesaler of bread buns for schools, colleges, sandwich shops and other food retailers across the North-East, and is understood to supply to about 1,000 clients across the region.
Only recently, it invested £750,000 to upgrade its premises.
Three years ago, Riverside Bakery was hit by controversy, when it was fined £16,000 after pleading guilty to four breaches of food safety regulations, which were described as an isolated incident.
In October 2005, food inspectors reported “appalling and highly unsatisfactory”
conditions at its factory, in Bowes Road, with one finding fruit flies when he squeezed a lump of yeast. Further inspections by Middlesbrough Council’s food and safety team found more discarded dough infested with fruit flies, biscuit beetles and mould, dirty equipment in preparation areas, and toilets covered in human faeces.
Since then, the company has recovered and made significant investment in its factory, but is now suffering as a result of the recession. However, it has continued to trade normally, with the business being sold as a going concern.
Last night, Mr Ranson, restructuring and recovery partner at Baker Tilly, said the interest in Riverside Bakery was encouraging.
“Since being appointed administrators, the business, with the support of customers, suppliers and employees, has continued to trade normally,” he told The Northern Echo.
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