Threat to 300 jobs at major bakery

May 3 2008 by The Journal

ALMOST 300 North East jobs were under threat last night after international bakers Tindale & Stanton went into administration.

Difficult trading conditions and increasing costs are being blamed for the demise of the County Durham-based baker – set up in 1974 following a chat by two neighbours over a garden fence – which has four sites.

Administrators PricewaterhouseCoopers said the business has suffered as public tastes changed from traditional meals to Indian, Chinese and Italian, and the trend for healthy meals has grown.

The company is continuing to trade as a going concern while the administrators seek a buyer.

Last night council leaders said it was massive blow to the local community and pledged to do all they could to support the employees.

Ian Stokoe and Ian Green of PricewaterhouseCoopers LLP have been appointed as joint administrators of the company, which supplies pies, pasties, bread and cakes directly to retailers across more than 1,000 sites stretching from North Northumberland to the North Lakelands and down to South Yorkshire and Lincolnshire.

The business also sells traditional British food to retailers in mainland Spain, Ibiza and Tenerife.

The administrators said the long term future of the employees would depend on what happened over the next couple of weeks.

Tindale & Stanton’s main savoury manufacturing plant at Burnopfield employs 207 people, 62 work at the breadmaking factory in Gateshead and the van distribution site at Newton Aycliffe has 10 staff while a further 18 are based at its other van distribution site at Osset, West Yorkshire.

Mr Stokoe said: “Trading has been difficult in recent months and the administration of such a well established business is clearly disappointing news for all stakeholders and the employees in particular.

“However, we are looking to secure a rapid sale of the business and assets of Tindale & Stanton and consequently we are very keen to speak to anyone who might have an interest in acquiring all, or part, of the business or assets of the company.”

It also had to absorb recent cost increases and the rising price of raw materials, rather than pass them on to customers. Leader of Derwentside council Alex Watson said: “It’s a tremendous blow to the local community.

“Unemployment is only 2.3% but Tindale and Stanton is a household name and it is a blow to the economy, but more to those who may lose their jobs.

“The company is certainly well respected.

“They built up the company from nothing and this is a real sad day.

“I would hope that everything is being done to help them. Certainly we on the council would do whatever we can.”