Mortons Rolls has been saved from insolvency by investors who have purchased the historic Glasgow bakery. The company, known for its morning rolls and tagline “We built this city,” has asked 110 employees to return to work immediately
Mortons Rolls has announced that production will resume this Sunday after being rescued from administration by a group of angel investors.
The Glasgow-based bakery, known for its morning rolls and “We built this city” slogan, is requesting 110 employees to return to work immediately at its Drumchapel location. When the company went bankrupt on March 7, 230 individuals lost their jobs, causing a hunt for new funding.
Financial difficulties, the Covid epidemic, rising energy prices, and “contractual responsibilities to huge retailers” are among the issues cited by the company. PVL, an investment group, has declared that it has taken over the company and is “confident” that it will turn around the company’s fortunes.
Investment consortium PVL injects new life
On Friday, PVL spokesperson John McIlvogue stated: “This is a sad moment for me, the people who work here, and the larger community that relies on the jobs provided by this plant. We didn’t want the last few weeks to turn out the way they did, but it was completely out of our hands.
“The key thing now is that Mortons is back in business, that we’ve put the crew back on the line, and that we’re ready to resume manufacturing our legendary rolls that Glasgow has been clamouring for. Mortons has returned, therefore Glasgow no longer needs to worry about nae rolls.”
Mortons is by no means out of the woods: Mr McIlvogue has underlined that the factory in Drumchapel is “antiquated”. PVL expects the Scottish Government would provide an assistance package for the firm to ensure it can make rolls for “generations to come”.
He went on to say: “In a perfect world, these issues would have been resolved before we restarted production, but we couldn’t leave the staff in limbo. They needed us to open the gates and allow them to return to work, and we knew it was the correct thing to do.
“Morton’s Rolls, founded in 1965, quickly became a popular breakfast option throughout Glasgow and the West of Scotland. The company later expanded into the production of sweet delicacies and cakes, but it is understood that the Phoenix firm’s immediate focus is on the production of breakfast rolls, of which it produces two million every week.”
These circumstances are by no means perfect, and there is still work to be done to ensure Mortons is a sustainable business that can continue for years to come,” said Glasgow region Labour MSP Paul Sweeney, who has been credited with being “vital” in securing Mortons’ future. The government has pledged to do all in their power to ensure that this is the case, and I will do everything in my power to keep them accountable.
“The town of Drumchapel needs Morton’s to prosper and I’m certain that with the appropriate assistance to invest in modernising operations and with a renewed focus on their core baking products, this firm will outlive all of us. It’s been a long couple of weeks for everyone involved, but we made it, and I’m overjoyed that Glasgow residents will be able to enjoy their favourite morning rolls once more.”
While Mortons has promised to hire additional people in the near future if company stability can be ensured, 120 employees will not be returning to work. Thompsons, a law firm, is preparing a class action lawsuit to seek an eight-week protective award.
“The Scottish Government is aware of rumours that Morton’s Rolls is to resume production next week and welcomes the fact that a number of people affected by the company stopping to operate earlier this month are likely to be re-employed,” a Scottish Government spokesman said.”
Business Minister Ivan McKee and Scottish Enterprise have both met with the investor and have requested for full details on options for the future of the Morton’s Rolls plant. We’re waiting for those specifics.
“Those employees who are still affected by the closure of Morton’s Rolls remain our urgent concern. Partnership Action for Continued Employment (PACE), the Scottish Government’s initiative for reacting to redundancy circumstances, will continue to provide assistance to affected employees.
“PACE assistance is currently available online and via the PACE Hotline. Partick Employment Centre has hosted PACE Assistance and Career Fair activities.”
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With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.