David Wood Baking will undergo a brand refresh as its lender completes a buyout to take the own-label bakery out of family ownership, The Grocer has learned.
Global asset management firm Barings struck the deal in partnership with co-founder and managing director Karen Wood following a difficult few years for the company.
David Wood Baking secured credit facilities worth around £30m from Barings, alongside the asset-based lending arm of Leumi, in 2024 to help with a turnaround following a fire at one of its factories.
But receivers at advisory firm Interpath were appointed over the shares of David Wood Baking UK Ltd earlier this year. The appointment of a receiver is typically an enforcement action by a lender to protect its position.
Karen Wood, who has led the business since autumn 2025 and co-founded the group with David Wood in 2008, will continue as MD, alongside newly appointed CFO Bruce Korican, operations director Aaron Corbett, who returned to the business in April after two years at other bakery businesses, and the wider senior leadership team.
Headquartered in Leeds, David Wood Baking employs more than 1,500 staff across seven manufacturing sites in the UK, producing bread, savoury pastry, ready meals, food-to-go such as pizza and toasties, and sweet bakery items for supermarkets and discounters, as well as foodservice customers.
“Our business has continued to evolve over the past 20 years at the heart of the UK food industry, transforming into a leading supplier of quality food products,” Karen Wood said.
“Our upcoming rebrand will be another step in that journey as we continue to support some of the biggest names in retail, food manufacturing and foodservice. Like the rest of the industry, we’ve had to navigate inflation and a fragile trading environment, so we’re proud to have supportive partners in Barings and Leumi UK with us as we build a more resilient business for the future.”
Abhi Bothra, a senior director at Barings, added: “We are delighted to partner with Karen Wood and the wider management team. The company is a well-established operator in the UK food manufacturing sector, supported by long-standing customer relationships, a resilient business model and a reputation for quality.
“We look forward to supporting the business as it embarks on its next phase of growth.”
Challenging years for David Wood Baking
David Wood has struggled since being hit with a wave of inflationary costs around ingredients, transport and energy in the wake of the Ukraine war in early 2022. The group managed to return to profitability in 2023, increasing its prices with customers and focusing on efficiencies at its sites.
But a fire in September of that year ripped through its Dudley bakery, completely shutting down production at the Midlands site.
Production was successfully shifted to the other factories, maintaining supply and revenues, but resulting in a prolonged period of losses given inefficient costs of working.
The business also became embroiled in a legal tussle over its insurance claim but eventually received a £50m payout in October 2024. Earlier in 2024, David Wood Baking secured the £30m credit facility from Barings and Leumi, with advice from Interpath, which has continued to support the business with its turnaround.
David Wood has yet to file accounts at Companies House for 2025, but it generated turnover of £260m in the 18 months to 30 November 2024, with monthly average sales 9.1% lower than in the prior six-month period. It also swung from an operating profit of £3.7m for the six months to a loss of £6.5m because of significant levels of exceptional costs related to the fire and insurance claim.
The most recently available accounts said the business had returned to underlying profitability by the end of the financial period.
Joint receivers Anthony Johnson-Magee and Kristina Kicks of Interpath are set to be discharged from office following the acquisition by Barings.
Receiverships differ from administrations as the business does not need to be insolvent for a lender to appoint a receiver over an asset or assets covered by its security. Typically, a lender will appoint a receiver following a default in repayment terms for a loan by the borrower.
Barings, which has $502m (£378m) of assets under management, and Leumi UK will now continue to support David Wood Baking as lenders following the buyout.
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