Project D redundancies as bakery arm goes into administration

The bakery arm of a well-known Derby doughnut company is entering administration, leading to a number of redundancies. Project D is appointing administrators to the manufacturing part of its business, listed as "Bugibba Independent Limited", in a decision made as part of a "broader strategic plan".

Derbyshire Live understands that Project D has closed the bakery due to a range of different factors, one of which being the agreement of a company voluntary arrangement (CVA) for paying off its debts after working with an insolvency practitioner.

A spokesman for Project D said: "We can confirm that we have taken steps to enter administration today for one of our group’s manufacturing businesses, Bugibba Independent Limited. This decision is part of a broader strategic plan.

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"We have implemented several cost-reduction measures over the past few months within our bakery and we are committed to protecting the interests of our creditors and working through this process responsibly.

"Bugibba Independent Limited has faced significant challenges over the last 12 months, including a record increase in minimum wage, rising raw material costs, and a recent spike in chocolate prices. In addition, our revenue has declined by 20 per cent due to the ongoing cost of living crisis, making it increasingly difficult to operate.

"Regrettably, we have had to make a number of redundancies across both the bakery and office teams. We are working closely with those affected to support them in finding new employment opportunities."

It is understood that dedicated staff have been left devastated by the news. Project D is trying to secure interviews and part-time work for staff while they find other long-term jobs. Discussions are ongoing about what form the business will take after shelving its manufacturing arm.

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