Doughnut company files for administration as jobs axed
Derbyshire doughnut producer and retailer Project D has appointed administrators to its manufacturing business, TheBusinessDesk.com understands.
The company has placed its Bugibba Independent Limited business into administration just weeks after it agreed it a company voluntary agreement with its creditors over debts totalling £298,000.
Director at Project D Max Poynton said: “We can confirm that we have taken steps to enter administration today for one of our group’s manufacturing businesses, Bugibba Independent Limited. This decision is part of a broader strategic plan.
“We have implemented several cost reduction measures over the past few months within our bakery and we are committed to protecting the interests of our creditors and working through this process responsibly.
“Bugibba Independent Limited has faced significant challenges over the last 12 months, including a record increase in minimum wage, rising raw material costs, and a recent spike in chocolate prices. In addition, our revenue has declined by 20% due to the ongoing cost of living crisis, making it increasingly difficult to operate.
“Regrettably, we have had to make a number of redundancies across both the bakery and office teams. We are working closely with those affected to support them in finding new employment opportunities.”
In 2021, Derby City Council provided an undisclosed grant from its Ascend fund to help the company during the Covid pandemic and In 2023, Project D raised £458,533 through crowdfunding to support its growth and expansion nationwide.
The largest portion of the money owed by the firm was to HMRC, which was £120,574. Payments of £45,750 to Max Poynton and Jacob Watts, as well as £9,500 to Matt Bond, Project D’s co-founders, will not be made. Other debts included in the CVA are £26,609 owed to Barclays Bank for a bounce-back loan.
