Aulds to close stores after retail business goes into liquidation

Family-owned bakery Aulds has issued an update after last week placing its retail business into liquidation as part of a group turnaround plan allowing it to focus on the growth of its production and wholesale operations.

Paul Dounis and Steve Ross of RSM Restructuring Advisory LLP, who were appointed Joint Liquidators of the retail arm of the group, Thomas Auld & Sons Limited, on 2 August, have now assessed the position of the business and decided four stores including Renfrew, Kilmarnock, Irvine and Ayr will close to reduce losses.

All affected staff have been contacted and their claims are being dealt with by the Redundancy Payments Service.

Liquidators continue to assess the position of the remaining 22 stores with a view to selling all or some of the stores as a going concern to enhance value and safeguard as many jobs as possible.

The liquidation will not impact upon the group’s two other subsidiary companies, Aulds Bakeries Limited – which manufactures fresh and frozen bakery at the firm’s Greenock site – and Aulds Delicious Desserts, which has a manufacturing facility at Inchinnan.

The remaining 22 Thomas Auld & Sons Limited stores across Scotland will continue to trade; and Aulds bakery products will still be available as normal in 50 Scotmid stores throughout Scotland, as well as from other independent outlets where they are currently sold.

Paul Dounis, RSM restructuring advisory partner and provisional liquidator, said: “It is with profound regret that 26 employees of this historic business have been made redundant with immediate effect; and we are working with local and national organisations to support those employees to process claims as quickly as possible.

“The ongoing pressure facing the high street has been well documented with high profile names entering distressed situations; and unfortunately, this difficult trading environment has led to another blow for the high street. The retail business is well known in the sector and we would ask any parties with an interest in acquiring the business to get in touch with us as soon as possible.”