Newspaper article The Journal (Newcastle, England)
Switch Secures 200 Jobs at Bakery Firm Milligans
Byline: Peter McCusker
QUICK work by the directors of bakery and coffee shop firm Milligans has secured its future - and that of its 200 workers - after it faced a pounds 300,000 bill following the pre-Christmas collapse of a rival.
The firm faced a possible hit from the failure last month of North East Bakery which went into administration.
The Newcastle firm''s 13 shops and bakery closed and 120 staff lost their jobs.
Its stores had been previously owned by Milligans and landlords have been chasing it for rent payments.
Now Milligans has transferred its business, which includes 13 coffee shops, three bakeries and a butchers, to a new holding company.
Managing director Stephen Milligan said: "Following the unfortunate sudden administration of North East Bakery, sites that were originally leased from us, have now reverted back to us as fixed overheads.
"Due to this climate, the financial implication on our business meant that we had to act quickly to minimise any damage, which I am delighted we have been able to do.
"We have had to restructure our business to protect ourselves and the jobs of our 200 staff.
"We have had to transfer the assets of the business to a new vehicle to protect us from liabilities which are not of our making. We have been fielding calls from a number of landlords asking for rent payments.
"With some properties still on long-term leases we reckoned the liabilities could have been in region of pounds 300,000 a year. …