The Crusty Cob seeks new owners to re-start retail bakery business
Family-run bakery The Crusty Cob is looking to sell its business assets out of liquidation with the aim of re-opening nine shops across Devon and Somerset.
Advisory firm Azets is supporting the business – established in 1969 – as it looks to make the move, enabling a restart under new ownership and aiming to prevent the permanent closure of its retail outlets.
The company employed more than 100 staff, the majority part-time.
The business said last month that it had been significantly impacted by a combination of external cost pressures, including reduced consumer demand linked to the cost-of-living crisis, increased business rates and inflexible upward-only rent leases.
The anticipated rise in employers’ National Insurance contributions, which would have added a further £125,000 annually, compounded the financial strain.
Duncan Swift, restructuring partner at Azets, said: “This is a textbook example of the residual cost-of-living and new cost-of-doing-business crises affecting many SMEs across the UK. The Crusty Cob was hit by a toxic mix of economic headwinds that, taken together, pushed a viable, long-standing business into financial distress.”
The Crusty Cob is not the only bakery facing challenges. Azets recently advised on the partial sale of Oddie’s, a 120-year-old North West bakery business, which resulted in seven of its sites being acquired by Waterfields.
Swift said many businesses would benefit from early, wider-ranging contingency planning.
“In today’s volatile trading environment, it’s increasingly important for businesses to consider a range of scenarios beyond their primary plan,” he added.
“Exploring the ‘what ifs’ early can make a real difference. There’s a great deal of high-quality advice available – often free – which can help shape practical, alternative strategies to build resilience.
“Particularly in the food sector, there is clear evidence that adopting higher standards and providing greater transparency around product provenance can enable businesses to secure premium pricing, which directly improves margins – even in challenging markets.
“Equally, focusing on core strengths and streamlining operations around what the business does best is key to long-term sustainability.”
The Crusty Cob’s shops are in The Strand, Exmouth; Rolle Street, Exmouth; Littleham Road, Exmouth; Broad Street, Ottery St Mary; High Street, Honiton; The Lawn, Budleigh Salterton; Cowick Street, Exeter; High Street, Burnham On Sea and Fore Street, Tiverton.
