Fast-growing supermarket chain Haldanes has become vertically integrated after snapping up a bakery.

The chain, which was formed in November 2009 but already has more than 50 stores, acquired Woodhead Bakery and 11 of its 29 retail outlets last week. Scarborough-based Woodhead collapsed into administration last month, blaming inflation and rising global wheat prices.

Haldanes created a new subsidiary Bakery Products Limited to acquire Woodhead, which it now plans to use to supply bakery lines to its burgeoning estate.

"The Woodhead bakery and shop portfolio represents an excellent fit for our portfolio," a Haldanes spokesman said. "It offers total vertical integration, which will see the bakery supply all Haldane Retail Group stores in due course, commencing with the initial 20 Ugo stores."

Haldanes' stores, including Ugo and Haldanes Express, are currently supplied by Nisa-Today's, but when Ugo was launched in January, chairman Arthur Harris admitted the retailer could "branch out" on its own.

The Haldanes spokesman added that it had big plans for Bakery Products including Woodhead's Wedge Pie, which is sold under the The Pie People brand. "We will develop The Pie People brand and open retail units in selected locations under that name. We also plan to extend the bakery's retail portfolio, including operations using the Woodhead name."

Phil Davis, the long-standing MD of Woodhead, is to remain with the ­company as MD of Bakery Products and will take full responsibility for the management of the bakery. Colin Woodhead, the son of the bakery's founder, will also help the company in a consultancy capacity.

"It is great news for Scarborough that the factory has been saved," added Davis. "I look forward to working with the new owners to rebuild confidence in the Woodhead name and products."

Woodhead's remaining 18 stores were acquired by rival baker Coopland & Son.