The Crusty Cob, a beloved family-run bakery established in 1969 with more than 100 employees, is facing the threat of permanent closure. The company, known for its nine local shops across the South West, has been forced into liquidation due to various financial challenges. These include dwindling consumer demand, escalating business rates, and inflexible upward-only rent agreements.
The bakery, which has eight outlets in Devon and one in Somerset, has appointed Azets, a leading UK accounting and advisory firm, to facilitate the sale of its assets and help secure new ownership. This move aims to safeguard the jobs and locations associated with the business and pave the way for a fresh start.
Duncan Swift, a restructuring partner at Azets, highlighted the broader economic struggles faced by SMEs in the UK. He emphasized that The Crusty Cob’s predicament is a prime example of the compounding effects of the cost-of-living crisis and the challenges of doing business in the current climate. In addition to existing financial burdens, the prospect of increased employers’ National Insurance contributions further exacerbated the bakery’s financial strain.
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As the fate of The Crusty Cob hangs in the balance, the Somerset shop in Burnham-on-Sea and the various Devon locations face an uncertain future unless they can find a new owner to take the reins.