A crisis-hit bakery owes Fife Council at least £93,000 in non-domestic rates arrears, The Courier understands.
The region’s economy was dealt a bitter blow on Monday when it was confirmed that 135 members of staff at Kingdom Bakers had been sacked after the company collapsed.
The Kirkcaldy firm which supplied bread, cake and pancakes to the likes of Tesco, Sainsbury’s and Morrisons was forced to call in the receivers after ”severe cash flow problems” led to production stopping at its sites in Mitchelston Industrial Estate, Kirkcaldy, and Wemyss Road, Dysart.
On Tuesday, it emerged thousands of pounds is still due to the council in unpaid rates. It is understood the local authority has worked with the company over a number of years to try to address the arrears although court papers reveal sheriff officers had to be called in last February.
Sheriff officers successfully arrested funds in August but this was subsequently released as the company indicated a new investor was to provide a cash injection that would allow the arrears to be cleared.
Despite a repayment plan being put in place and the council being assured this was a ”formality” the new investor did not materialise.
Council sources have suggested that there have been real concerns in recent months that ”false promises” were being made. In the words of one source, the council was seeking evidence that it was not being ”strung along”.
Officers were also said to be working hard with the company to seek a ”positive resolution” to the situation right up until the company announced it had called in the receivers, recognising the importance of the company to the economy and employees.
Council environment, enterprise and transport committee chairman Tony Martin admitted it was ”always disappointing” when a Fife company went into receivership.
”I know the management and staff have been doing all they can to turn the situation around but small to medium-size bakery firms throughout the United Kingdom have been facing significant challenges over the last few years,” he said.
”Rising cost, skill shortages, aggressive competition and a changing market have made it difficult for companies like this to survive. Fife Council will do all it can to help those seeking other employment.”
On the tax issue specifically, council head of revenue and exchequer services Eileen Rowand added: ”Our priority has always been to try and safeguard the jobs at Kingdom Bakers and, at the same time, protect the public purse.
”Several attempts were made to work with the company to reduce the amount of non-domestic rates outstanding to the council. We still have a duty to recover the £90,000 owed to the council and will be working with the receiver in this regard.”