Doughnut brand places manufacturing arm into administration

Doughnut producer and retailer Project D says it has taken steps to place one of its manufacturing businesses into administration. The company stated that Bugibba Independent Limited would enter administration as part of a “broader strategic plan”.

The administration comes just weeks after Project D agreed to enter a company voluntary agreement (CVA) with creditors over debts amounting to £298,000 in order to secure its future. Project D, which is based in Derbyshire, sells doughnuts online and at retail locations across the UK.

Project D director Max Poynton said that the company has “implemented several cost reduction measures over the past few months within our bakery” and that it was “committed to protecting the interests of our creditors and working through this process responsibly.”

He continued: "Bugibba Independent Limited has faced significant challenges over the last 12 months, including a record increase in minimum wage, rising raw material costs, and a recent spike in chocolate prices. In addition, our revenue has declined by 20 per cent due to the ongoing cost of living crisis, making it increasingly difficult to operate.”

Poynton added: "Regrettably, we have had to make a number of redundancies across both the bakery and office teams. We are working closely with those affected to support them in finding new employment opportunities."

In accounts for the year ending March 31 2023, Bugibba Independent Limited’s fixed assets were valued at slightly over £657,000 and current assets at approximately £381,000. At the time, its net assets stood at around £123,000.


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