Edinburgh, Fife & East Scotland

Fords Bakery goes into administration

An East Lothian bakery has been placed in administration, with the loss of 67 jobs and a threat to another 87.

Fords Bakery in Prestonpans is now on the market, however, its nine shops have ceased trading.

According to KPMG administrator, Blair Nimmo, Fords has faced severe cash flow problems during the economic downturn.

It has also found it hard to cope with rising costs to raw materials and has suffered because of inefficient production.

The company, which had an annual turnover of £5m, had been supplying supermarkets, food service companies and independent bakeries in East and Central Scotland.

Mr Nimmo said: "Unfortunately Fords Bakery Ltd reported trading losses and has recently suffered severe cashflow problems.

"Like many other businesses in its sector, it has suffered from the downturn and the difficult economic conditions.

"It has also struggled to cope with increases in raw material costs and from production inefficiencies.

"Fords Bakery Ltd has an excellent reputation for quality and service, which will make it an attractive opportunity for potential purchasers."