Insolvent pasty company axes 109 jobs

More than 100 jobs are to be axed at Cornwall-based Crantock Bakery Ltd, after the manufacturer fell into administration this week.

Lucy Winterborne and Alistair Wardell of law firm Grant Thornton UK were appointed joint administrators of the Cornish pasty producer.

According to Grant Thornton, Crantock entered insolvency after failed attempts to sell the business in recent weeks.

“Despite the best efforts of management, cash has deteriorated rapidly leaving the directors with no choice but to close the business,” said Grant Thornton.

Employees made redundant

Regrettably, it has not been possible to continue to trade the business in administration and so 109 employees are being made redundant. Ten employees have been retained to assist with the close down of the business and the sale of stock.”

Crantock called staff into its site in Indian Queens, Newquay at 6am yesterday morning (9 July) before they were due to start their shifts to announce that all of them had been made redundant, with immediate effect, according to local news site Cornwall Live.

Established almost 30 years ago in Crantock before moving to its more spacious home in Newquay, Crantock Bakery produced a range of baked goods, including Cornish Pasties, sausage rolls and turnovers.

80,000 pasties a week

The company manufacturer more than 80,000 pasties a week and was reported to have a turnover of £13m last year, according to accountants KPMG. The pasty maker was reportedly one of the largest employers in the Duchy.

A number of manufacturers have fallen into administration since the start of this year, with many citing money pressures as a result of losses of contracts and rising costs.

Last month, frozen pastry and ready meals manufacturer Freshpack has entered into administration, putting 68 jobs at risk.

Meanwhile, in May, curry and sauces manufacturer Simano Foods was rescued from administration, saving 11 jobs at the Wigan-based business.