Cakes and tarts manufacturers Lowthers Cakes and Country Bakehouse has gone into receivership "due to competition".
Mike Seery and Brian Green of KPMG Corporate Recovery have been appointed as joint administrative receivers to both companies following a request from the directors.
The companies, which supply own label products to most leading supermarkets, will continue to trade. Green said he was encouraged by the response of potential buyers. Wigan-based Lowthers Cakes is a producer of jam tarts, mince pies and cherry Bakewells and employs 130 people with an annual turnover of £8.2m. Country Bakehouse employs 85 staff in Llandudno in the manufacture of Eccles cakes and sponge products and has a £2.5m annual turnover.
Both companies are part of the Lowther Food Group, which also owns Furniss Foods and Cookie Coach. Neither of these companies are in administrative receivership and all are continuing to trade as usual.

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