Inter Link: McCambridge takeover will not proceed
Shares in UK cake maker Inter Link Foods were suspended today following the collapse of takeover talks with Irish bakery group McCambridge.
Inter Link, which makes Soreen malt loaf and supplies a range of supermarkets with own-label cakes, said a planned buyout by McCambridge would not now proceed.
Inter Link remains in talks with a number of parties over the possible sale of the business and said its bank continued to support the company’s trading requirements while that process took place.
However, the bank was not able to agree to a pre-condition from McCambridge that would have forced the lender to “compromise” its position, prompting the talks to collapse.
Inter Link said it had requested the suspension of its shares pending clarification of its financial position.
The firm has been rocked by a series of profits warnings, leading to an underlying loss for the year to the start of this month. As well as tough trading conditions, the business has been disrupted by its switch to a new central distribution centre at Warrington.
It added today: “The company met its sales budget in May and is optimistic about finding a solution which retains jobs and provides supply and sales continuity for the longer term.”
Inter Link employs around 1,800 people, but recently shed 120 posts as part of £2m (€2.9m) of annual cost savings identified by new chief executive Ian Croxford.
