Edinburgh bakery chain Bross Bagels faces liquidation after racking up £1.2m debt

The company said it’s ‘restructuring’ in a bid to save eateries and secure jobs.

Popular Edinburgh bakery chain Bross Bagels is now facing liquidation after plunging into financial trouble.

It's understood that the business had racked up debts in excess of £1.2m, with the bulk of that owed to the Inland Revenue. Doubt has been cast over its future after a petition was lodged at Edinburgh Sheriff Court on August 3 on behalf of owner Larah Bross and her partner Marc Millar for the business to be wound up by the court. The petition filed for an interim liquidator to be appointed.

The much-loved company could lose all its eateries, have its bank account frozen and face legal and other costs. But owners have stressed that eateries will continue to trade while they are fighting to save jobs and ‘restructuring’ the business. On July 14, Ms Bross registered a new business Hot Mama Bagels Ltd at Companies House. The business lists her as the sole shareholder.

Larah Bross - Bross Bagels, Edinburgh Photo: Lisa Ferguson

It comes after an investigation by the Edinburgh Reporter and Edinburgh Guardian revealed that a 'warning of winding up action' letter was issued in July for £574,132 to Bross Bagels by HM Revenue and Customs. It read: "If the company doesn’t pay in full or contact us about a payment plan by August 3, 2023, we may apply for a winding-up order against the company for this debt."

An email was later sent by Bross Bagels informing suppliers that it had been placed in administration, explaining that plans to settle debt would be confirmed soon. It's understood that the firm's suppliers have threatened to withhold their services and are seeking payment.

Ms Bross earlier told the papers: “I think everyone is aware of how hard it’s been for the hospitality sector over the last few years and things continue to be tough, but we are working tirelessly just to keep ourselves trading. We have taken professional advice; and a restructure has allowed us to safeguard all jobs and the good news is that it’s business as usual for bagel lovers.”

Last September, the business launched its second crowdfunding campaign ahead of a planned expansion. Bross Bagels has been contacted for comment.

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