125-year-old UK Icing and Marzipan Producer Saved from Administration

JF Renshaw, a venerable UK producer of icing and marzipan with a legacy spanning 125 years, has been salvaged from the brink of administration through a strategic acquisition by British Bakels Ltd. The Liverpool-based manufacturer, recognized for its Royal Warrant granted by George VI in 1950 for almond products, faced severe challenges amid supply chain disruptions and economic headwinds.

The undisclosed acquisition deal encompasses the business and assets of Real Good Food (RGF) plc and its bakery ingredients unit, JF Renshaw. All employees are set to transition seamlessly to British Bakels, the UK arm of the privately-owned Bakels Group headquartered in Switzerland.

Over the past year, RGF grappled with turbulent market conditions, leading to a workforce reduction of more than 100 staff in September. In a bid to navigate financial uncertainties, RGF divested its Rainbow Dust Colours business to European Fermentation Products, a subsidiary of the Albex Group, for €800,000. The subsequent review of its remaining operation, JF Renshaw, hinted at the potential dissolution of the London-listed group.

Facing a limited working capital position and heightened financial uncertainty, RGF acknowledged the need to preserve value for creditors. With the clock ticking, administrators from Naturopath Advisory were appointed to explore strategic options, culminating in a swift sale to British Bakels.

Rick Harrison, MD of Interpath Advisory, expressed satisfaction with the transaction, emphasizing the preservation of employment for the Liverpool-based workforce. "With a heritage dating back 125 years, JF Renshaw is well known for its range of baking ingredients and cake decorations. We're pleased to have been able to conclude this transaction, which will enable trade to continue," Harrison affirmed.

JF Renshaw, once responsible for 90% of the marzipan sold in UK retail, held the position as the country's largest producer of colorful sugar paste used by cake decorators. The Liverpool factory, producing around 20,000 tonnes annually, ensures meticulous standards by milling sugar onsite and processing almonds for marzipan production.

James Cawthorne, MD of British Bakels, expressed delight in the acquisition, uniting two esteemed brands with a cumulative history nearing 250 years. "We look forward to working with our new colleagues to develop the concept of Renshaw breaks," Cawthorne stated, underlining the commitment to further innovation in the world of baking ingredients. As part of the acquisition, the entire workforce of JF Renshaw will seamlessly integrate into the operations of British Bakels, based in Oxfordshire.