New job hopes after rescue of JW Rae Bakers

Oct 16 2009 by Andrew Mernin, The Journal

THE 11th-hour rescue of a bakery, which saved 16 jobs, is to be followed up by the creation of a further 15 jobs by the firm’s new owner.

After passing retirement age, the three owners of JW Rae Bakers had unsuccessfully spent over a year looking for a buyer for their firm before becoming resigned to the fact that liquidation was their only option.

However, the intervention of an accountancy and business advisory group resulted in the emergence of Sunderland-based Monument Foods as a new suitor for the firm.

The business has been acquired by Monument’s Aspin Bakery division and will now see its product range expanded from a selection of breads to include cakes and pies.

Meanwhile, as well as securing 16 jobs, Aspin will also create a further 15 new jobs over the next year.

Monument Foods director David Thompson said: “We have gone from strength to strength since our inception in 2004, increasing our turnover from £1m to £2.5m in just five years.

“The growth of the business is also set to create an additional 15 jobs over the next year.

“JW Rae Bakers has a very strong reputation in the region and we will endeavour to continue the hard work of its directors.

“This deal offers a real opportunity for Aspin Bakery to grow and expand.”

Linda Farish, director of recovery and insolvency at RMT – the Newcastle firm which stepped in to help secure a future for the bakery – said: “We issued the particulars of the JW Rae business to more than 10 interested parties, one of which was Monument Foods. It was fantastic to successfully secure a buyer for the business as this deal will also save the 16 jobs at JW Rae.”

“The acquisition of JW Rae is a great opportunity for Aspin Bakery to develop its products and open a new site in South Shields.

“Protecting and creating jobs in the region is particularly vital to the North East economy at present and will also help to promote key skills and training in the bakery trade.”