Roberts Bakery is preparing to appoint administrators after struggling to battle severe headwinds in the bread category, with more than 400 jobs hanging in the balance, The Grocer has learned.
The group filed a notice of intention (NOI) to appoint an administrator with the courts yesterday (6 October). The move gives the business breathing space from creditors as it works on a potential deal to sell the assets.
Roberts, which makes in excess of two million loaves of bread a week, has been working with advisors at ‘big four’ accountancy firm PwC in recent months to explore solutions to save the business, The Grocer understands.
A spokeswoman for Roberts said discussions were “well advanced” with third parties and the group was “optimistic” about a positive outcome in the coming days that would preserve the whole company as a going concern.
A City source told The Grocer that Warburtons had been looking at a potential purchase of the Roberts speciality breads factory, while Endless-owned cake manufacturer BBF ran the rule over the biscuits business. It is unclear if any deals will take place. There had been no takers for the standard bread production site, the source added.
In July, Roberts restructured its main factory in Cheshire as it fought for its survival, entering consultation with 250 of its staff. Last month, the group decided to close its Derbyshire plant, which produces speciality bread and morning goods, as restructuring efforts continued, with another 38 jobs at risk of redundancy.
Roberts was hit hard in 2023 as a devastating fire at its Northwich factory wiped out almost two-thirds of its production capacity. It lead to a 21% fall in turnover to £76m in the year ended 31 August 2024.
Bread volumes have struggled to recover ever since, despite the best efforts of management, as customers secured alternative supply contracts and structural difficulties in the sliced bread market plagued the sector. The same pressures of overcapacity in the market have recently seen Hovis and Kingsmill agree to a merger.
Roberts can trace its history back to 1887 and today operates from three sites in Northwich, Ilkeston and Winsford, making biscuits at the latter factory. The group employed more than 750 staff before its troubles started.
It suffered a dramatic slump in sales in 2024 as shoppers shifted buying habits in the bread category, putting fewer standard loaves in trolleys in favour of speciality items such as crumpets, flatbreads and brioche.
Category leader Warburtons has defied the wider slump to capture more of the market, but Roberts, along with rivals Hovis and Kingsmill, has suffered.
Value sales at the supermarkets for Roberts declined 28% [NIQ 52 w/e 7 September 2024], with some of the losses caused by the disruption from the fire, according to The Grocer’s latest Top Products Survey for 2024.
The slowdown continued into 2025, as revealed by the newest category report, with values down 28% again [NIQ 52 w/e 22 February 2025].
The latest Companies House accounts for the group showed a full and final insurance settlement for £19.9m was paid in December and helped push Roberts back into the black, with EBITDA of £24.3m.
The Grocer has approached PwC, Warburtons and BBF for comment.
Response from Roberts Bakery
Roberts Bakery confirmed the company was actively engaged with potential partners and funders in an attempt to secure the future of the business.
The company told The Grocer the NOI would provide time for its management team and “experienced third parties” to secure the best possible outcome for the bakery.
“The priority is to safeguard jobs, preserve its brands and place the business on a stronger, more stable footing,” the statement said.
“In recent years Roberts has faced an exceptionally difficult period, following a devastating fire, loss of production capacity, and the resulting fall in market share. These pressures have been compounded by unprecedented inflation since the invasion of Ukraine, rising energy and ingredient costs, and intense competitor activity.
“Despite the huge efforts of everyone involved, these factors have made recovery extremely challenging.”
A spokeswoman for Roberts added: “Discussions are well advanced with third parties, and we are optimistic about a positive solution in the coming days that will preserve the whole company as a going concern.
“We are keeping all stakeholders informed including our employees. Day-to-day operations are unaffected, and the company is continuing to trade and fulfil orders as normal.”
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