Blog 2 week 5

More than 240 jobs saved as Mathiesons bakers are bought up by rival

May 28 2012

MORE than 240 jobs have been saved after a food firm that went into administration was sold to one of their rivals.
Bakery business Mathiesons, who have 28 shops, called in the administrators three days ago.
Today, it was announced that part of the firm, which dates back to 1872, has been sold to Prestige Bakeries Limited.
Mathiesons' headquarters and productions centre in Larbert is included in the deal, along with eight stores - one of which is at the headquarters site.
While the sale safeguards more than 240 jobs there will be 84 redundancies as the administrator said there was no option but to close the 20 stores that remain unsold.
Blair Nimmo, joint administrator and head of restructuring for KPMG in Scotland, said: "The early sale of the business is a positive outcome from what has been a difficult period for the company and its staff.
"The business was in a severe degree of distress but the deal represents the best outcome for the company's creditors.
"We wish Prestige Bakeries Limited and the retained staff every success for the future."
As well as its stores, Mathiesons sold their products to a number of major supermarket chains.
The brand dates back to 1872, although the company had been formed after Mathiesons Bakeries Limited went into administration in 2010.
The eight stores that will remain trading are the one at the company's Larbert headquarters, together with the shops in Camelon, Cow Wynd in Falkirk, Denny, Elgin, La Porte Precinct in Grangemouth, Gretna and The Gyle in Edinburgh.
The stores that are closing include four in Edinburgh - those in Ferry Road, Montagu Terrace, Oxgangs Broadway and Boswall Parkway.
Also affected are shops in South Street and Dean Road in Bo'ness, Stenhousemuir, Bathgate, Stirling, Kirkintilloch, Callendar Square in Falkirk, Dunblane, Armadale, Charlotte Dundas Court in Grangemouth, Kilsyth, Liberton, Mayfield, Lennoxtown, Colvilles Park in East Kilbride and Kilmacolm.
http://www.dailyrecord.co.uk/2012/05/28/more-than-240-jobs-saved-as-mathiesons-bakers-are-bought-up-by-rival-86908-23877221/

Summary:
This article is about the Bakery Business Mathiesons. 240 jobs have been saved because the firm has been sold to Prestige Bakeries Limited. If they would not have bought Bakery Business Mathiesons many people would have been unemployed nowadays. The shops were all around Ireland and Mathiesons Business was in severe danger because of the crisis that is affecting all of Europe. The bakery business is all together not a very succeeding business but luckily it has been saved and Prestige Bakeries Limited will try to make it successful again. ( 99)

Review:
In my opinion it is a very good but dangerous decision of Prestige Bakeries Limited to try and save Bakery Business Mathiesons. What if they cannot be saved anymore? Then Prestige Bakeries would suffer from their losses. Luckily their administration is up to date and they can calculate what to produce when they want to be succesful. I think it is a good deal to save the jobs, otherwise there would have been more unemployed people and that means more people on the streets. To keep the society running you need to stimulate the economy by providing jobs. That is why I believe this is a good choice of Prestive Bakery Limited. (113)