Tindale & Stanton closure won't affect staff numbers
Nov 17 2010 by Peter McCusker, The Journal
POPULAR North East baker's Tindale & Stanton says the closure of its Gateshead bakery should help boost its bottom line as it toughs it out in a difficult market.
Figures released by the firm for the year ending May 2010 show annual revenues steady at £7m with pre-tax profits up slightly at £122,689.
The company says performance this year is steady and in recent weeks it has rationalised operations by closing its bakery in Gateshead, transferring all 16 staff to its Burnopfield headquarters.
Company owner Peter Frankland said: “Things are still tough in the industry. In an effort to take some costs out of the business we have closed the smaller bakery in Gateshead and transferred the staff and machinery up to the Hobson Industrial Estate.
“There have ben no job losses and we still employ the same number of staff, 166.”
Frankland saved the business after it went into administration a little over two years ago and is the sole-owner of the company now called Hobson Foods. Its customers include some of the main supermarket chains, wholesalers, workplace canteens, smaller bakers and shops.
“People are not wanting to spend money in this on-going credit crunch, many people are making their own lunches and taking them into work.
“We make the staple things of many people’s diets – pies, pasties and bread and while supermarkets’ sales are flying it’s difficult to secure a margin from many of these.
“People ask me what is the price of loyalty? It’s simple ... 1p a pie. However, we do have lots of good customers and are constantly looking at improving our range, but it’s a tough market place.”
Frankland says the company’s core range has stood the test of time but he is always looking to develop further and has expanded into vegetarian and gluten-free products.
Hobson Foods has also launched a new regional savoury dish, the Beef and Broon.
This consists of Northumberland beef and Mordue ale on an oatmeal base with a horse radish topping.
Frankland formed Hobson Foods in 2008 to buy the assets of Tindale & Stanton after it had been placed into administration.
In 2003 he had been part of a management buyout team that took over the wholesale baker.
In February 2005 he helped the business recover from a fire that wrecked its plant in Burnopfield, County Durham.
The company has a fleet of 22 vans which operate throughout the North East and it also exports its most popular lines to the expat community in Spain.
