Lossmaking Cornish bakery chain Rowe’s has been snapped up by a global turnaround specialist for an undisclosed amount.

Luxembourg-based Iberia Industry Capital (IIC) said it specialises in acquiring companies with “significant, but untapped potential and developing them into industry leaders”.

WC Rowe, which can trace its roots back to 1949, has 16 branches across the South West, as well as three concessions in Asda and two in Tesco in the area, and supplies supermarkets and independent retailers with branded and own label products.

IIC added that the strong network of outlets and national coverage through supermarkets and independent retailers was “a springboard for future growth”.

“Rowe’s will now embark on a new period of development and expansion,” a spokeswoman for Rowe’s said.

“The senior management team will remain in place and will work hand in hand with IIC to take the business forward. It is an exciting new phase for Rowe’s, which will continue to enhance the company’s premium brand and products.”

Rowe’s recorded revenues of almost £29m in 2011 but has suffered a steady decline since, making hefty operating losses in the four years from 2012 to 2015, including a £1.4m loss on sales of £17m in the 52 weeks to 2 January 2016, according to the latest available accounts at Companies House for WC Rowe (Falmouth) Ltd.

Rowe’s pasty factory was hit by a fire in November 2014, with full production not restored until April 2015.