Milligans bakers axes three shops and 25 jobs

Jan 15 2010 by Peter McCusker, The Journal

BAKERY and coffee shop chain Milligans has shut three stores with the loss of 25 jobs – just days after saying it had restructured the company to ensure its long-term survival and protect its staff.

Stores in the Metrocentre, Newcastle’s Eldon Gardens and Kendal have all been closed.

Last week company boss Stephen Milligan said he had restructured the business to secure the future of his 200-plus staff.

However, one worker who contacted nebusiness yesterday said: "We are gutted. We read how he was supposed to have saved everyone’s jobs and there are people who have worked here for years being made redundant."

The Journal reported last Wednesday how Mr Milligan faced a possible £300,000 hit following the closure of North East Bakery which had gone into administration in December.

Mr Milligan said at the time: "Following the unfortunate sudden administration of North East Bakery, sites that were originally leased from us, have now reverted back to us as fixed overheads.

"Due to this climate, the financial implication on our business meant that we had to act quickly to minimise any damage, which I am delighted we have been able to do." He went on to say that the restructure would protect the company and "the jobs of our 200 staff".

However, last night he said: "We had to restructure the company last Friday following the administration of North East Bakery and were able to save 220 jobs.

"The deal meant we were forced to renegotiate terms on all of the leases and regrettably we have not been able to reach agreement on three of our Milligan’s stores.