The firm said it is optimistic as talks continue with another prospective buyer but wages will be paid late for March
Staff at Welsh company Brace’s Bakery will be paid a week late this month after the sale of its Pen-y-Fan site fell through. The bakery said it has been in talks with the Welsh Government and financiers to bridge a funding gap while talks continue with a second prospective buyer for the site.
Brace’s director Jonathan Brace has assured staff their jobs are safe. But instead of being paid on March 25 bosses have told the 250 workers that salaries will go into their bank accounts on March 31.
Brace’s confirmed plans to shut its manufacturing plant on the Pen-y-Fan Industrial Estate in Blackwood and axe jobs last October. It comes amid rising costs and pressures in the bread market. For our free daily briefing on the biggest issues facing the nation, sign up to the Wales Matters newsletter here
The bakery directors wrote to staff in October saying that as a result of “increasingly difficult” market conditions the only “viable option” was to close Brace’s manufacturing plant.
Jonathan Brace, the director of Brace’s Bakery, said at the time that the company envisaged fewer than 20 redundancies and the majority of staff were expected to move to the Croespenmaen site, which is located around a mile away. But now the hoped for Pen-y-Fan sale has fallen through, the company confirmed.
An initial letter sent to staff warning them of delayed salaries for March, seen by WalesOnline, cites “unforeseen circumstances” and says the delay is temporary and that the company had not taken the decision to take such action lightly.
The letter, from Brace’s finance director Leon James, also assured staff that Brace’s would cover any fees staff may incur for late payments as a result of salaries not going into bank accounts on time.
Asked about the late salary payments Mr James shared a second letter that has now gone out to staff explaining the reasons and details behind the delay.
The letter, from Mr Brace, says although one prospective buyer for the Pen-y-Fan site “has fallen by the way”, another is still in talks with Brace’s.
“The management team have been in discussions with the Welsh Government and other financiers to get funding to bridge the gap between the end of March and the sale date,” it reads.
“One of our customers has come up trumps and bridged the funding gap which secures our position long term,” the letter sent on March 5 reads.
“This does not mean we should relax; the success of the business is always dependent on sales growth, cost control and the managing of waste numbers.
“Mark, I, Craig and Leon do apologise that we had to move the payroll date out until the 31st for this month, but we had to be secure that the monies were in our bank account in time.
“There is more good news, as we have secured more business which should be coming in the next few months. Please take from this we have been working hard to make sure the business is secure and your jobs are secure.”
The Brace family has been baking in the Welsh valleys since 1902 after George Brace started his own bakery in the mining village of Pontllanfraith.
The business, which now supplies bread, Welsh cakes, rolls and other artisanal products to major supermarkets, is still run by the Brace family.
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