A Scottish bakery business employing several hundred people in various parts of the country has been entered into liquidation after succumbing to the effects of an ongoing cash flow crisis.
Aulds Bakeries was first established 118 years ago but has been unable to remain solvent in the face of pressures on its finances in recent months and years.
Liquidators appointed to manage the affairs of the business have said that they will keep the 26 Aulds outlets open for the time being while they seek out a potential new owner for parts or all of its retail operations.
Around 180 jobs are believed to be at risk as a result of the bakery business’ entry into liquidation but 200 people are expected to keep their jobs at food making facilities in Greenock and Inchinnan, near Glasgow Airport.
As well as having more than two dozen retail stores open to the public, Aulds supplies various baked goods to third parties and those elements of its business are expected to remain viable.
A spokesperson for the company has explained that its operations have been hit by many of the same problems currently facing most UK high street retailers.
“Like many high street businesses, we’ve found trading extremely tough in recent years, with pressure from high street and supermarket competition, as well as increasing ingredient, distribution and wage costs,” the spokesperson said in a statement.
“All of this has meant the retail business has been making a loss which we can no longer sustain.
“We have spent several months trying to find alternative options but unfortunately this is the only way of protecting as many jobs as possible.”
High street retailers across the UK have been faced with extraordinarily strong economic headwinds in recent months, with several very well-known operations becoming insolvent and being forced to call in administrators over the course of this year.
It is estimated that close to 50,000 jobs were lost within the British retail sector over the course of the first six months of 2018, according to the Press Association.