Troubled Taranaki bakery business stays in Yarrow family after sale

Taranaki baking business Yarrows (The Bakers) has been sold by receivers BDO to a member of the founding family, John Yarrow.

He had originally sold his stake to his brother Paul in 2005, resulting in a legal fight within the family when Paul took him to court over a purchase price he alleged was too high, before settling out of court.

The sale, which also includes a solvent Rotorua company, Gilles Bakery, was for an undisclosed sum and follows a five-month search for a buyer by accounting firm BDO, which was appointed receiver in May.

Receiver Brian Mayo-Smith called it "an excellent result for customers, suppliers, staff and local communities alike".

He said other companies in the Yarrows Group operating in Australia were unaffected and trading normally.

Yarrows (The Bakers) 2011 is owned by John and Rosaleen Yarrow.

Forty-five employees lost their jobs in a post-receivership restructuring, but 100 others kept their jobs at the Manaia plant near Stratford to allow the business to trade on, attracting what BDO said in August was "considerable interest".

Yarrows had total liabilities of $72.8 million on total assets of $76.7 million at May 30. The bulk of the debt was to Westpac Banking, which is owed $55.2 million plus interest.

The business has been in the Yarrow family for three generations.