A family-run Devon bakery is looking to sell its assets out of liquidation in a bid to prevent the permanent closure of nine outlets across the county.
The Crusty Cob was established in 1969 and employed more than 100 staff, but has been impacted by "external cost pressures" in recent years including reduced consumer demand linked to the cost-of-living crisis.
The business, which is hoping to restart under new ownership, said increased business rates, upward-only rent leases and the rise in employers' national insurance contributions has also added to the financial strain.
Advisory firm Azets is supporting the business. Duncan Swift, restructuring Partner at Azets, said: “This is a textbook example of the residual cost-of-living and new cost-of-doing-business crises affecting many SMEs across the º£½ÇÊÓƵ.
"The Crusty Cob was hit by a toxic mix of economic headwinds that, taken together, pushed a viable, long-standing business into financial distress.â€
The Crusty Cob is not the only bakery facing challenges; a notable rescue deal in the North West recently saw Azets advising on the partial sale of Oddie’s, a 120-year-old bakery business. This resulted in seven of its sites being acquired by Waterfields.
Mr Swift said many businesses would benefit from early, wider-ranging contingency planning. He added: “In today’s volatile trading environment, it’s increasingly important for businesses to consider a range of scenarios beyond their primary plan.
"Exploring the ‘what ifs’ early can make a real difference. There’s a great deal of high-quality advice available - often free - which can help shape practical, alternative strategies to build resilience.
“Particularly in the food sector, there is clear evidence that adopting higher standards and providing greater transparency around product provenance can enable businesses to secure premium pricing, which directly improves margins - even in challenging markets. Equally, focusing on core strengths and streamlining operations around what the business does best is key to long-term sustainability.â€
The Crusty Cob has outlets in The Strand, Exmouth; Rolle Street, Exmouth; Littleham Road, Exmouth; Broad Street, Ottery St Mary; High Street, Honiton; The Lawn, Budleigh Salterton; Cowick Street, Exeter; High Street, Burnham On Sea and Fore Street, Tiverton.
