Two bakery companies cook up rescue deal for Mathiesons

TWO bakery firms have bought a third out of administration – and plan to create one of Scotland's largest independent bakery businesses.

The deal will see Mathiesons – based in Larbert, Stirlingshire – merge with James Allan Bakers, which operates in the west of Scotland, and Murdoch Allan Bakers, which has a presence in the North-east.

The three firms jointly operate 51 high street outlets and employ more than 560 people. They will continue to trade under their respective brand names.

Mathiesons, which employs 340 people throughout Scotland, has 22 shops and six restaurant cafs, mainly in the Central Belt.

The firm was established in Falkirk in 1872 and fell into administration in early March after struggling with an "over-burdened cost base".

A three-man team – David Kilshaw, the former chief executive of Food Partners, one of the UK's largest sandwich makers; Mark Bradford, who owns James Allan Bakers, and Paul Allan, who owns Murdoch Allan Bakers – stuck the deal with Deloitte, Mathiesons' administrator.

The takeover, for an undisclosed sum, was backed by Lloyds Banking Group.

Bradford, retail director of the new parent company, to be called Mathiesons Foods, said: "The acquisition means we have the opportunity to create a significant business, with the potential to grow and become one of Scotland's largest independent bakery companies.

"We believe strongly that the merged business is capable of delivering the economies of scale required to compete effectively in today's market place."

The Mathieson family ran Mathiesons Bakeries until July 2009, when a private equity firm bought a controlling stake.