A bakery which collapsed in the hands of Scarborough businessman Arthur Harris has been bought out of administration by its former managers.
Administrators have sold the Newcastle based Tindale & Stanton as a going concern to a consortium of four former managers, saving 85 jobs.
The bakery fell in to administration at the same time as Arthur Harris’ other business Bakery Products Ltd, which owned the Woodhead Bakery and 11 of its shops.
However while administrators kept Tindale & Stanton, and two shops in Harrogate trading, the Scarborough bakery and 11 shops were closed after a week in administration.
The move saw more than 100 staff made redundant after adminstrators were unable to find a buyer.
After two weeks trading in administration Tindale & Stanton has been bought by Star Cottage Bakery Ltd.
Administrator Andy Wood, from the P&A Partnership, said: “We are pleased to have been able to sell the business as a going concern, particularly as the buyers are former employees
“The quick sale of Tindale & Stanton is an endorsement of the rescue process that an administration enables. We must thank employees who have supported the administrators throughout the process.
“Also, the bakery’s key secured creditors, who gave us their backing to keep the business trading.”
In a separate deal, two bakery shops in Harrogate which were also owned by Scarborough’s Bakery Products Ltd have been sold to a new company Howards Bakery Ltd. The move has saved 16 jobs.
Speaking when the Scarborough bakery closed on June 15 Mr Wood said: “We have kept Bakery Products going all week in a bid to ﬁnd a buyerfor it as a going concern. Regrettably that has not been possible and we were left with no choice other than to close the bakery.”