Bakery hit by war and misappropriation of funds set to appoint administrator
A Liverpool bakery employing more than 100 staff has filed a Notice of Intention to appoint an administrator.
Coulton’s Bread, based on the Liver Industrial Estate, in Aintree, was established in 1987. It operates depots in Liverpool, Manchester, under the Quayside Bakery brand, Newcastle, under the Bakestone Bread brand, and Bradford, under the Happy Bread brand.
The firm’s website said it delivers more than 4,500 orders each week via its 80-strong fleet of delivery vehicles.
But the firm, which employed 116 staff in the year ending January 31, 2023, has slipped into loss, and has failed to recover from the sudden death of its managing director, Howard Hunter, in June, 2022.
Following his death, an investigation found that over a period of six years some cash sales had been “misappropriated”.
The independent auditor’s report for the financial year to January 31, 2022, said the misappropriation “became apparent after the date of his death (ie subsequent to the year-end) and had therefore not been included in the accounting records or in the accounts of the company”.
The report goes on: “The current directors believe they have ascertained the full amounts of funds misappropriated and have taken steps to recover these funds from the estate of the deceased managing director.”
In the accounts for 2022, directors Stephen Cohen and Graham Mahon said the company “will be recovering £516,954 from his estate.”
In the last accounts filed by the firm, for January 31, 2023, the directors said they had reservations about the company’s status as a going concern as it was struggling to compensate the loss of Mr Hunter due to his sudden death “and the absence of any succession planning”.
The accounts for the year to January 31, 2023, showed that Coulton’s increased its turnover, from £17.426m to £20.23m.
However, its losses significantly widened from £62,725 in its 2022 fiscal year, to £283,119.
The directors said the accounts had been impacted by price increases, due to the war in Ukraine, that had hit grain and fuel costs.
They added: “While the directors have plans to ensure continuity and longevity, these plans have not come to fruition as yet.”
