Member Article

Baker saved from closure

Family-run bakery chain Dundees has been rescued from liquidation by its old boss after friends rallied round to help.

The Newcastle-based business had to call in business recovery experts from RMT just before Christmas, putting 75 jobs in jeopardy. But now boss John Phillips is back in charge under the name of Nichols, Your Baker, saving 68 of the jobs.

Mr Phillips says price increases from suppliers, the state of the economy and some inflexible banking arrangements led to the demise of Dundees after nearly 20 years operating in the West End of Newcastle.

The business was once honoured by Gordon Brown for being one of the top inner city employers in the country.

Now after a hectic Christmas period trying to get a new structure in place, Mr Phillips is back in control thanks to the generosity of suppliers and friends providing loans.

After the liquidation of Dundees in early January, Mr Phillips contacted the landlords of his shops to successfully secure the leases for the new business. He also contacted customers - he has retained more than 90% of them - and analysed the old business with RMT to find out how best to move forward.

This was posted in Bdaily's Members' News section by Ruth Mitchell .