Roberts Bakery was saved from bankruptcy by UK-based businessman and billionaire Ranjit Singh Boparan’s private investment vehicle.
Earlier this month it emerged that Roberts Bakery, based in Northwich, Cheshire, had lodged a so-called Notice of Intent (NOI) to appoint administrators.
However, Boparan has now stepped in to rescue family business Roberts Bakery through its Boparan Private Office (BPO) investment platform, saving 433 jobs in the process.
The businessman also owns 2 Sisters Food Group, which is now a predominantly poultry processor and a major private label supplier to major UK supermarkets following a series of asset disposals.
Boparan and his wife Baljinder are the sole shareholders of 2 Sisters through their holding company Boparan Holdings.
Financial terms of the transaction were not disclosed. The company will be renamed Roberts Bakery 1887 to reflect the founding of the branded and own business.
“The partnership will support the existing management team and bring new talent to the business to ensure a sustainable and exciting future for this iconic brand,” a statement read.
A BPO spokesperson added: “We are proud to play a role in the preservation of this iconic bakery, its people and its heritage. Frank Roberts & Sons has been at the heart of the community for over a century and we are committed to supporting its long-term success as Roberts Bakery 1887 Ltd.”
Roberts Bakery had cited “exceptionally difficult” challenges for its decision to file for administration, including inflationary pressures, rising energy and ingredient costs and competition from peers.
The company also suffered a fire at its Northwich bakery two years ago.
With a group turnover of £96 million ($128.1 million), the portfolio of brands under the Roberts name includes bread, buns and buns, buns and biscuits.
It is also dedicated to foodservice with sandwiches and toast. As well as the Northwich bakery, the company operates two other factories in Ilkeston, Derbyshire, and Winsford, also in Cheshire.
However, in September, Roberts Bakery announced its intention to close the Ilkeston site because it was “no longer aligned with the company’s future plans”.
The statement was accompanied by a comment from the bakery’s family owners: “The Roberts family are deeply relieved that the business has been saved by a BPO-backed consortium of the management team and that there will be a recovery plan to ensure it can prosper and prosper and that so many jobs will be saved.
“Of course, we are sad that we will no longer be the ones there to share this new opportunity.”