Former staff members of the Butterwick bakery chain have spoken of their “betrayal” and anger after 12 of the company’s 14 stores were closed with immediate effect, leaving approximately 62 employees redundant without prior warning or their final monthly pay.
The closures, which include branches in Corby, Kettering, and Market Harborough, were announced to staff via email on a Monday morning. The decision comes as the business faces financial challenges due to rising operating costs and a shift in customer spending.
Former employees claim that the abrupt closure has created significant financial hardship for them, many of whom are now worried about paying rent and bills.
Chloe Morrison, the former manager of the two Market Harborough branches, stated she felt “betrayed” and described the situation as an “awful mess.” She learned of the announcement as she prepared for an early shift and is now having to seek support from a food bank.
Former employee Tia Andrews shared a public post criticising the lack of notice, consultation, and immediate payment. She highlighted that staff were forced to attend a redundancy meeting while the company was simultaneously posting about its “exciting future” on social media.
The 62 impacted employees were informed that they would not receive their wages for the month they had just worked, nor any outstanding holiday pay or expenses, and would have to reclaim the money through a government scheme.
The owners, Ryan and Fiona Scarborough, stated they were “heartbroken” for the impact on their team, but the company is now being placed into Creditors’ Voluntary Liquidation.
A spokesperson for BRI Business Recovery and Insolvency provided clarity on the process:
Support and Claims:
“Amounts due for wage arrears, accrued holiday pay and redundancy, where appropriate, and statutory notice pay, owed to the former employees of the business, will be paid by the Redundancy Payments Service (‘RPS’) and the claim process will be dealt with in accordance with the relevant legislation and official guidance.”
Liquidation Timeline:
“We are working very hard to agree a liquidation date and will be able to confirm this date to the former employees on Monday 29 September. We can confirm that following the business entering into liquidation, the employee claims will be dealt by the appointed liquidator as a priority…”
Logistics:
“Tips from each site have been secured and will be distributed to the former employees. Following the redundancy announcement, arrangements were immediately made for the former employees to collect their personal items from the 12 sites…”
Employee Assistance: The spokesperson confirmed that all 62 employees have been contacted by IPERA Services Limited, who were
“instructed to provide continued support to staff, including hands-on assistance with their claims.”
Creditor queries have been directed to BRI Business Recovery and Insolvency.
Despite the widespread closures, the company’s owners say this is the “beginning of an exciting new chapter,” as they plan to focus on the two remaining stores at Rushden Lakes and on St Giles’ Street in Northampton. They aim to return to their roots as an authentic in-store bakery with an updated menu.
The company has reassured customers that all celebration and wedding cake orders will be honoured, with alternative collection arrangements made for affected customers. Loyalty points and gift cards remain valid at the two operational locations.
