GettyImages-157441693

Source: Getty Images

Scottish business Waas Bakery produced a wide range of baked goods

Scottish bread supplier Waas Bakery has fallen into administration after being hit by cost pressures.

Interpath Advisory were appointed as administrator of Walls Bakery Ltd and Saltness Ltd, which traded as Waas Bakery, on 19 April 2023.

Founded in 2003, Waas operated a bakery in Shetland, producing a range of bread loaves, bread rolls, pastries, cakes and pancakes for local cafes, shops and an unnamed supermarket customer.

The bakery operation and property were purchased by the present owner in 2016, but the business experienced challenging trading conditions during the Covid lockdowns.

Ongoing cost pressures and lack of investment capital also resulted in cashflow pressures for the company, according to Interpath.

Attempts to find a buyer to rescue the business failed and the bakery ceased trading after appointing administrators from Interpath, with all nine employees made redundant.

“Clearly this is disappointing news for this well-known local business, not least for the company’s dedicated employees,” said Blair Nimmo, Interpath chief executive and joint administrator of Waas.

“Our in-house specialist employee team will seek to support staff with the provision of information needed at this time and to claim their statutory entitlements from the Redundancy Payments Office. We are also committed to ensuring that the optimum outcome for creditors is achieved.”

Geoff Jacobs, Interpath MD and Waas joint administrator, added: “It is hugely disappointing that Walls Bakery, which has been an important part of the Walls community in Shetland, is no longer able to continue to trade.

“We would advise that any parties who have an interest in the bakery operation or the property contact the joint administrators in early course as there remains an opportunity to acquire this well-established local business.”