McErlain’s Bakery makes the Genesis Crafty Range
Magherafelt-based McErlain’s bakery was on the point of collapse due to family problems.
Founded 50 years ago, the bakery counted among its customers Marks & Spencer, Waitrose and Sainsbury’s.
It is believed the firm will enter into administration soon but a buyer is lined up to take it over immediately.
According to BBC NI News, the new owner is Paul Allen, Tayto’s chief executive in Northern Ireland.
The Genesis Crafty range includes pancakes, scones, cakes and bread.
Its turnover is said to have grown to £22m a year.
The business was originally founded by Joe and Roberta McErlain in 1968 and run by six of their children, five of whom are leaving following Mr Allen’s purchase.
The sale price to Mr Allen is not known.
It is believed McErlain’s Bakery got into financial difficulties within the last year – the last set of accounts lodged at Companies House is for 2016.
A person familiar with the collapse said the company had grown faster in recent years than it was able to cope with.
The new owner is likely to take over within the next 24 hours.
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