BCRS Business Development Manager Angie Preece with Fatherson Bakery CEO Laurence Smith
A bakery business which supplies cakes to leading food retail and garden centre brands has secured a BCRS loan to fund its continued recovery from the Covid-19 pandemic.
Fatherson Bakery Ltd, based in Alcester, Worcestershire, received funding from the Midlands Engine Investment Fund (MEIF) delivered through BCRS Business Loans with a co-investment from BCRS to rebuild the business and ease pressures over rising ingredient costs.
Following the investment, Fatherson Bakery, which supplies cakes to retailers such as Co-op, Budgens and Spar along with garden centre groups including Dobbies, is embarking on the next phase of its growth plans, safeguarding 100 jobs in the process.
Fatherson Bakery had experienced cash flow challenges after successive Covid-19 lockdowns and the introduction of social distancing measures impacted supply chains and staffing levels. With rising cost price issues causing further impact, the company sought funds for recovery plans.
Laurence Smith, CEO at Fatherson Bakery, said: “We are delighted to have secured the funding we required to support our recovery and protect jobs after the pandemic, which would have been extremely challenging without backing from BCRS Business Loans. We had been unable to get help from high street funders while BCRS Business Loans supported us throughout the application process.
“We had challenges coming out of Covid, particularly with labour shortages and supply issues around ingredients, which meant the business needed investment. Finding support from traditional lenders proved too difficult but our bank directed us to BCRS Business Loans, which was a constructive step.
“It has been refreshing working with BCRS Business Loans, as they are always making sure they get all the information needed to assess our needs. We have had a positive dialogue throughout the process, which has been swift and allowed us to move forward quickly.
“The economic outlook remains challenging, but we are positive about our direction as the funding has allowed us to keep on top of everything. We have been able to work with our suppliers and have the headroom and breathing space needed.”
Angie Preece, Business Development Manager at BCRS Business Loans, said: “Fatherson Bakeries has a strong reputation for producing high quality cakes and fruit pies which are sold by leading retailers so we were keen to support them as they recover from the challenges of Covid and rising ingredient prices.
“As a co-operative Community Development Finance Institution (CDFI), BCRS Business Loans is committed to supporting the growth and prosperity of as many businesses as we can across the West Midlands region.
“With an experienced leadership team and strong relationships with customers, we knew this funding would support further success. When other lenders cannot help, we believe no viable business should go unsupported, so we were pleased to help Fatherson Bakery at every step of the journey.”
BCRS Business Loans CEO Stephen Deakin said: “The loan to Fatherson Bakery is a superb example of where CDFIs like BCRS make a positive difference, particularly around safeguarding jobs. We wish the team every success for the future and look forward to seeing the impact that they make.”
Mark Wilcockson, Senior Investment Manager at British Business Bank added: “Through its various funding options, the MEIF continues to actively support businesses across the Midlands that are contributing to the UK’s economy, and are in need of support in the post-pandemic recovery stage. This MEIF investment will enable Fatherson Bakery to safeguard over 100 jobs as an example of how MEIF investment has an ongoing positive impact across the region.”
The Midlands Engine Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
Businesses in the West Midlands region that are struggling to access finance from traditional lenders can secure loans from £10,000 to £150,000 from BCRS Business Loans to support growth and recovery plans. BCRS is a delivery partner for the latest phase of the Recovery Loan Scheme (RLS).
Visit www.bcrs.org.uk to discover more or submit an initial application form.
