Owners confident of saving iconic Toowoomba business
UPDATE: Managers of an iconic Toowoomba business that's fallen on hard times are confident of keeping their staff and trading through the woes.
Cakes Galore, which went into liquidation last month, is confident of continued trade and success in the desserts market after securing a financial backer after its staff and assets were sold to related business Indulgent Bakery Products.
CEO Julian Lancaster-Smith said the move was the best outcome for suppliers and staff.
"Over the past few months we have been working hard with the administrators to navigate through this difficult period," he said.
He said securing an external backer would bring financial and broader management experience to the business.
SV Partners were appointed administrators of Cakes Galore in May with creditors voting to liquidate the company in an effort to maximise their returns.
"After discussion with our creditors, administrator and advisors, we believe that the best outcome for our suppliers was to place the company into liquidation which then allows the administrators to commence collecting and distributing money as quickly as possible," Mr Lancaster-Smith said.
"I am pleased that we have been able (to) secure the future for nearly all of our current permanent and casual staff who have agreed to continue to transfer to the new entity.
"As a local employer and resident I know what Toowoomba is going through economically at the moment and keeping as many staff as possible was important to the business, the broader community and our family.
"We are now working with our customers and suppliers who have supported us through the past few months to transition the business to Indulgent Bakery Products."
Mr Lancaster-Smith said the business would continue to trade as normal while it transitions into Indulgent Bakery Products.
9.20AM: An iconic Toowoomba company has gone into liquidation.
The Australian Securities and Investments Commission has advised Cakes Galore, the parent company of Quality Desserts, will be wound up after going into voluntary administration earlier this year.
Cakes Galore CEO Julian Lancaster-Smith said at the time he remained hopeful the iconic Toowoomba company could "trade our way out of the current situation".
But three meetings between creditors and administrators SV Partners failed to resolve the financial woes.
The liquidation notice was issued on June 20.
Cakes Galore was founded 23 years ago as a family-run company.
It is believed to have employed 40 full-time workers directly and more than 100 through its related companies.