Failure to integrate acquisitions in the past decade is largely responsible for Inter Link Foods' problems, claims its new boss.
Ian Croxford, who replaced Chris Thompson as chief executive of the company on May 1, said: "They were acquiring new businesses faster than they could consolidate them and were running nine separate businesses, not one."
Inter Link, which has had a disastrous year dogged by supply chain and IT issues, has already cut nearly 10% of its workforce to reduce costs after two profit warnings this year. It is also fielding offers from a range of private equity and trade buyers and considering a rights issue in a bid to raise cash. Croxford, who has held senior roles at Premier Foods, Bacardi, Diageo and Tate & Lyle, said he was good at identifying non-value adding activities. An estimated £2M would be saved by cutting jobs, waste initiatives and other "simple changes", he said.
Key to the turnaround would be securing a standard bakery model to ensure best practice across the group's 11 bakeries, he said.
After days of wrangling, via several stock exchange announcements, Inter Link has agreed the terms of a confidentiality agreement with Irish food group McCambridge - which may buy the business.
McCambridge had said Inter Link's "unreasonable stance" over access to its bankers had made meaningful discussions with the company almost impossible.