Sayers saved – at the cost of 450 jobs

Jun 10 2008 by Alex Turner, Liverpool Daily Post

SAYERS shut 40 shops and 450 staff were made redundant yesterday, after a management team bought the firm back from the administrators.

In a dramatic day for one of Liverpool’s iconic firms, Sayers owner, the Sale-based Lyndale Group, was placed into administration before group chairman and chief executive, Sandy Birnie and Michael Quinlan, bought Sayers and its sister firm Hampsons.

Thirty-nine stores across the North West, trading under the Sayers and Hampsons banners, were shut immediately, along with one Wimpy store, in Runcorn. Nineteen of the stores to close are in the Merseyside area.

It was also confirmed that Sayers’ Norris Green bakery, which was already expected to close at the end of a 90-day consultation period, will also shut with the loss of 211 jobs.

The new owner, which will trade as Sayers the Bakers, will employ 1,500 staff at 158 stores, and operate a bakery in Bolton.

However, the rescue package is expected to leave creditors out of pocket and staff waiting around six weeks to receive their redundancy payment, which will be paid by the Government.

Mr Birnie, who was appointed executive chairman of Lyndale in September, 2006, said: “This is a sad day for anyone associated with Sayers in Liverpool because 270 people have lost their jobs.

“Unfortunately, we have had to take some extremely difficult decisions in recent weeks but the situation was simply unsustainable and we have had to act now in order to protect the long-term futures and job security for the remaining 1,500 employees around the North West.”

He struck a positive note for the future, and said: “Sayers is an extremely strong brand on Merseyside – 60 shops will remain and we still employ over 500 people here,” he said.

He said he was confident in their business plan “which will mean job security for our remaining staff”.

However, the unions were left angry with the lack of consultation. Mr Birnie and Mr Quinlan set up Sayers the Bakers on May 1. They have been exploring options with business restructure specialists at BDO Stoy Hayward for three weeks, although the firm was only yesterday appointed as administrators.

John Higgins, organising district secretary of the Bakers, Food and Allied Workers Union (BFAWU), has been in regular contact with the company because of its plans, announced in April, to close its Lorenzo Drive bakery.

He said: “There was no warning whatsoever.

“I was at a consultation meeting with the company last Wednesday. For more than a week, they have been playing games with people’s lives.

“We have got an awful lot of angry people. People have been going into work and been sent home. Staff have been escorted off the site at Lorenzo Drive.”

Yesterday’s announcement coincided with the second day of the BFAWU’s annual conference in Bridlington, which meant that the union’s stewards were all off site and in Yorkshire.

The administrators are to hold a meeting with union representatives today.

Dermot Power, a partner at BDO Stoy Hayward, refused to say how much the company owed, but he confirmed that it was “well under water”. In its last published accounts, to September, 2006, Sayers had debts of £9m and had an operating loss of around £2m.

However, Mr Power believes cutting the 41 loss-making sites gives hope for the future.

The administrator is still looking for a buyer for the Bolton-based savoury products supplier, Peter Hunt.

The 96-year-old Liverpool bakers, which began in the Old Swan kitchen of newly-weds Fred and Lillian Sayers, remained a family business until 1979, before being owned by United Biscuits and Warburtons. It was sold to Lyndale in 1996.

alex.turner