Bagel Nash chain saved after pre-pack deal
Food chain, Bagel Nash, which has 11 branches across Yorkshire and Manchester has called in administrators.
The Leeds-based firm has appointed Graham Newton and Danny Dartnaill of BDO as joint administrators, who have confirmed the sale of the business and assets in a pre-pack deal to Golden Acre Bakery, which is part of Golden Acre Food Group, saving all 52 jobs.
The retail business remains unaffected – the sale involves Bagel Nash’s single site commercial bakery in Leeds.
The sale is said to be the result of “challenging market conditions” caused by the Covid-19 pandemic.
Bagel Nash is the latest sandwich/café business to have difficulty as a result of the pandemic, with La Bottega Milanese closing it’s branch at The Light, Uppercrust and Pret announcing 5,000 and 1,000 job cuts respectively and one of the country’s largest sandwich makers Adelie Foods going into administration.
Leeds-based private equity investors YFM had originally invested in Bagel Nash in 2012 and were still a minority shareholder. In a statement they said that with the business hit hard by Covid-19 over the last four months, they had “worked closely with management to secure a future and find a trade buyer to preserve the business and as many jobs as possible.”
Adding that, “Our primary goal was to help management to find a suitable, reputable long-term partner to take the business forward, securing as much employment, especially locally, as possible, and this has now been achieved.”
The spokesperson also confirmed that following the sale YFM will no longer be involved with the business but that they have “confidence that it now has a bright future”.
Graham Newton, BDO business restructuring partner, said, “Due to the challenging market conditions brought about by COVID-19, the company engaged BDO to undertake an accelerated merger and acquisition of the business and assets. Following a successful completion of the sale, all employees have been retained.”