Biscuit firm East Coast Bakehouse enters examinership

The Co Louth company employs 78 people

Biscuit maker East Coast Bakehouse has formally entered interim examinership after approval of its application by the High Court.

Biscuit maker East Coast Bakehouse has formally entered interim examinership after approval of its application by the High Court.

The Co Louth firm, which employs 78 people, nominated Kieran Wallace of Interpath to act as examiner for the company. The business says it faced financial cash pressure arising from high ingredient cost inflation, general increases in cost of doing business, and phased repayment arrangements of tax liabilities.

An independent report by EY restructuring partner Luke Charlton presented to the High Court concluded the company has a reasonable prospect of continuing as a going concern, subject to restructuring.

East Coast Bakehouse was set up in 2015, and serves brand, private label, and contract manufacturing customers in Ireland, the UK and other export markets. The company is believed to have delivered strong revenue growth, with compound annual growth of 47% over the past three years. 

Production and customer supply will continue as normal during the examinership process.

East Coast Bakehouse chair Michael Carey said entering examinership was a difficult decision, but "offers the most constructive route to securing the future of the business. 

"We have built a strong manufacturing business with a committed workforce, a diversified customer base and clear opportunities for growth. This process will allow us to address legacy financial pressures, strengthen the balance sheet and create a solid platform to conclude negotiations on further equity investment. 

"During this period, the business continues to trade and products remain available to customers as normal. While there is work to be done, we are confident that this process can conclude successfully and result in a strengthened business with positive long-term prospects.”