Auld’s bakery pulls the shutters down

Aulds announcement should have little effect on local jobs.  Picture Alan Watson.
Aulds announcement should have little effect on local jobs. Picture Alan Watson.

Aulds the bakers has announced that their retail outlets are to be placed into liquidation as part of a plan to turn around the business.

The family-owned bakery’s retail business is said to be in an “unsustainable loss-making position” due to pressure from competitors and increasing ingredient, wage and distribution costs.

The company do not have any stores in East Dunbartonshire, however they do operate out of four Scotmid outlets in Bishipbriggs, Milngavie, Bearsden and Kirkintilloch.

It is not thought that the announcement will have any effect on jobs locally.

Aulds currently has 26 shops employing 180 staff and liquidators are assessing the viability of selling all or some of the stores as a going concern in a bid to safeguard jobs.

Paul Dounis and Steve Ross of RSM Restructuring Advisory were appointed joint liquidators for the retail arm on Thursday.

The 26 stores will currently continue to trade and Aulds products will remain available in Scotmid stores and other independent shops across Scotland.

The group reported a loss of £430,000 on a turnover of £15.4 million in the year to April 1 2017.

The bakery will now focus on growing its production and wholesale operations at its bakery in Greenock and dessert site at Inchinnan, which employ 200 staff in total.

Managing director Alan Marr, a fourth-generation descendent of founder Thomas Auld, who opened his first bakery store in 1900, said the action is the only way to protect the rest of the business.

He said: “We have invested considerable time and effort over a period of several months looking at alternative courses of action which would allow us to avoid the voluntary insolvency of our retail business.

“Unfortunately, the losses in that area are such that the rest of the group is no longer able to sustain it. We sincerely regret that a significant number of our colleagues will be affected by these circumstances, and we’ll be working closely with local job centres.”