McErlain’s Bakery makes the Genesis Crafty Range
Mr Allen has made a private investment worth millions of pounds in McErlain’s Bakery, which trades as Genesis Crafty and employs 260 people in Magherafelt, Co Derry.
It is a supplier of buns and breads to supermarkets Marks & Spencer, Waitrose and Sainsbury’s
As Derry Daily reported last night, Mr Allen is buying the business in a pre-pack administration deal, with his purchase finalised just as administrators are appointed to the company.
Administrators EY were appointed to run the firm – which is still led by the McErlain family – at a court hearing in Belfast this morning.
There had been speculation that the company had been a victim of its own success and had difficulties handling the pace of its growth recenlty.
The company reported pre-tax profits of £484,000 in its latest accounts, down from £558,000 the year before.
However, turnover was up from £15.8m to £16.2m.
Despite making a significant investment in Genesis Crafty, Mr Allen (49) is expected to remain in his post as group chief executive of Tayto Group.
Mr Allen said today in a statement: “This is a private investment by me and my family.
“The McErlain family have built a great business, with excellent products which have national markets.
“I’m hoping that in my non-executive role with the company, I will be able to use my experience in the industry to help guide the growth of both the Genesis Crafty brand and the overall business.
“I’m delighted that the jobs at the factory have been secured and that Brian McErlain will be staying on as MD. I see this as a very sound business with great potential.
“We have been working closely with Danske Bank and John McMahon’s legal team at Keystone Law and their support and expertise has been invaluable.
“I’m now looking forward to seeing the company return to substantial, managed, successful growth and further investment in the future.”
Brian McErlain said: “This is obviously a time of mixed emotions; sadness that it is now a different family who own the business but hope for the future and the growth of the Genesis Crafty brand.
“Paul Allen’s ability is very well respected in the business community, not just in Northern Ireland but further afield.
“I believe that his involvement will be a real benefit to the company.
“I’d like to pay tribute to all our staff, customers and suppliers, who have been through some difficult times with us and whose support we have really appreciated.”
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