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Fears over 600 bakery firm jobs | Fears over 600 bakery firm jobs |
(about 2 hours later) | |
South Wales-based bakery Ferrari's, which employs about 600 people, has gone into administration. | South Wales-based bakery Ferrari's, which employs about 600 people, has gone into administration. |
The bakery, whose headquarters are in Hirwaun, near Aberdare, has 60 shops in south Wales, as well as wholesale foods business Celtic Savouries in Swansea. | The bakery, whose headquarters are in Hirwaun, near Aberdare, has 60 shops in south Wales, as well as wholesale foods business Celtic Savouries in Swansea. |
Management called staff together on Monday afternoon and told them that the company was in administration. | Management called staff together on Monday afternoon and told them that the company was in administration. |
Ferrari's parent company, Cleary Foods, said that "lower sales and higher costs" had led to the decision. | Ferrari's parent company, Cleary Foods, said that "lower sales and higher costs" had led to the decision. |
Further substantial financial support is required for the companies and it is not available Cleary Foods statement | |
The company said administrators had been appointed to control Ferrari's and Celtic Savouries, which will continue to operate while buyers are sought. | The company said administrators had been appointed to control Ferrari's and Celtic Savouries, which will continue to operate while buyers are sought. |
A statement read: "The companies' sales are, in common with others in our industry, down on the previous year, which itself was down on 2004/2005. | A statement read: "The companies' sales are, in common with others in our industry, down on the previous year, which itself was down on 2004/2005. |
"Costs are up, particularly due to higher fuel costs, increases in the minimum wage, and higher materials prices. | "Costs are up, particularly due to higher fuel costs, increases in the minimum wage, and higher materials prices. |
"The combination of lower sales and higher costs has meant that the margins have been squeezed. | "The combination of lower sales and higher costs has meant that the margins have been squeezed. |
"In view of the foregoing, further substantial financial support is required for the companies and it is not available." | "In view of the foregoing, further substantial financial support is required for the companies and it is not available." |
Welsh Conservative enterprise spokesman Alun Cairns AM said it was worrying news which "could not have come at a worse time of the year". | |
Mr Cairns claimed it was "yet another example of a Welsh business feeling the brunt of both UK and assembly government economic policies". | |
"I very much hope that a buyer can be found quickly to take on Ferrari's employees and its network of shops," he said. |