State Fayre Ltd, which took over the bakery located on Middleton Road in Crumpsall back in 2017, has recently entered creditors’ voluntary liquidation earlier this month.
Rooted in history since 1905, the company was known for providing various bread products, fresh pastries, and cakes to an array of clients, including supermarkets, restaurants, bars, and kosher shops. Its offerings were widely distributed throughout Greater Manchester and further afield in cities like Liverpool, Leeds, and Glasgow.
The liquidation came about due to ongoing financial challenges, exacerbated by escalating energy, food, and other raw material costs, in addition to increased payroll expenses following changes to the national minimum wage.
Steven Wiseglass, a director and founder at Inquesta, a firm specializing in insolvency and corporate recovery, was appointed as the liquidator on August 13.
“State Fayre Ltd enjoyed a successful run for many years, but the pandemic severely impacted its financial health starting in March 2020 when lockdown measures were implemented,” Wiseglass noted.
“Even after those restrictions were lifted, the company continued to face financial hardships. Monthly energy bills surged from £2,500 to nearly £7,500,” he elaborated.
“Moreover, the substantial rise in food prices and costs of other key materials further drained the company’s profits, compounded by increased payroll expenses linked to higher statutory wages.”
“These factors collectively exerted significant pressure on the finances. The director ultimately decided that continuing the business was not viable and sought our guidance, leading to the conclusion to liquidate the company.”
The bakery’s operations, along with its assets, brand identity, and goodwill, have now been acquired by YF & SF Bakery Ltd, a newly formed entity led by former State Fayre director Yehuda Fagleman and his wife, Shiri.
Fagleman, one of the directors involved in the initial acquisition in 2017, will remain in charge of the newly established bakery.
This transaction ensures that the bakery is able to keep operating, with its team of 25 employees transitioning to the new company under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE). This means they will retain their existing employment rights with the new employer.
Wiseglass expressed satisfaction with the sale, stating, “We are glad to have finalized the sale of the business’s trade and assets to YF & SF Bakery Ltd, thus guaranteeing the bakery’s continuation in serving a wide range of clients throughout the northwest and beyond.”
Fagleman conveyed optimism about the future: “We find ourselves in a strong position to advance the business and breathe new life into State Fayre, with many ideas to expand and invigorate operations, including launching new product lines and exploring other opportunities.”
He added, “We look forward to continuing our service to the dedicated individuals and businesses that comprise our loyal customer base.”
JMW Solicitors offered guidance to Inquesta during the sale process of State Fayre Ltd, while Orwins provided legal counsel to YF & SF Bakery Ltd. JPS Chartered Surveyors conducted the valuation of State Fayre Ltd’s IT assets, machinery, and equipment.
