Cake decoration brand Renshaw has been saved after a long-running turnaround attempt by owner Real Good Food failed, with the business rescued from administration by a Swiss bakery ingredients manufacturer.
British Bakels has acquired the business and assets of JF Renshaw Ltd, securing the brand’s future and saving the jobs of its 200 employees.
Recovery specialist Interpath Advisory has been working with Real Good Food since last month to explore options for Renshaw.
However, the insolvency firm said a solvent deal was not possible in the limited timeframe and the directors of Real Good Food instead appointed Interpath as administrator today (4 December).
British Bakels MD James Cawthorne said: “We are delighted that JF Renshaw, internationally known as a top quality producer of icings and marzipan, has joined the Bakels Group, bringing together two well-known brands with a combined history of close to 250 years. We look forward to working with our new colleagues to develop the concept of ‘Renshaw from Bakels’.”
Rick Harrison, MD of Interpath Advisory and joint administrator, added: “With a heritage dating back 125 years, JF Renshaw is well known for its range of baking ingredients and cake decorations. We’re pleased to have been able to conclude this transaction. which will enable trade to continue and safeguards employment for its workforce in Liverpool.”
The rescue deal comes after trading in Real Good Food’s shares was suspended from London’s junior market last week.
Last month, Real Good Food sold its Rainbow Dust Colours brand to Albex Group and said it was continuing a fight to survive following years of challenges, with rising costs and falling sales hampering its turnaround attempt.
A ‘radical reform programme’ had seen the group drastically cut costs and reset prices in a bid to return to profitability after suffering large-scale losses.
The share price had collapsed from historic highs of 165p in 2005 to lows of around 1p following a string of profit warnings, management shake-ups and accounting scandals in recent years.
Rainbow Dust was the latest in a long line of sell-offs, including a £43m disposal of snack bar maker Brighter Foods to THG in 2021. It also sold Garrett Ingredients in 2018, as well as disposing of Napier Brown, R&W Scott and Haydens Bakery.