State Fayre liquidates, bakery business sold to director-backed buyer

State Fayre Limited, the company behind a longstanding Manchester kosher bakery, has entered creditors’ voluntary liquidation after rising energy, ingredient and payroll costs compounded financial damage caused by the pandemic, with its business and assets sold to a new company established by one of its former directors.

Steven Wiseglass of Inquesta was appointed liquidator earlier in August and subsequently completed a sale of State Fayre’s trade, assets, brand and goodwill to YF & SF Bakery Limited. The purchaser was established by former State Fayre director Yehuda Fagleman and his wife, Shiri Fagleman. All 25 employees transferred to the buyer under TUPE and the bakery continues to trade.

State Fayre had acquired the bakery business on Middleton Road in Crumpsall in 2017, although the operation traces its roots to 1905. It supplies bread, pastries and cakes to supermarkets, other retailers, restaurants, bars and kosher stores, with products sold across Greater Manchester and in Liverpool, Leeds and Glasgow. Yehuda Fagleman, who was involved in the 2017 acquisition, will continue to lead the business under its new ownership.

According to Inquesta, State Fayre had traded successfully for several years before Covid-19 restrictions introduced in March 2020 significantly weakened its financial position. The company continued to face pressure after restrictions were lifted as its monthly energy bills climbed from approximately £2,500 to almost £7,500, while food and other raw material prices increased and higher statutory wage rates added to payroll costs.

The liquidator said the combined pressures eroded profitability to the point that the director concluded the company could no longer continue sustainably and sought insolvency advice, resulting in the decision to place State Fayre into liquidation. The subsequent asset sale allows the underlying bakery operation to continue, while YF & SF Bakery plans to introduce new product lines and pursue further expansion.

JMW Solicitors advised Inquesta on the transaction, while Orwins acted for YF & SF Bakery. JPS Chartered Surveyors provided valuations of State Fayre’s IT equipment, plant and machinery.