Park Cakes, which manufactures premium cakes and desserts for all leading retailers including Marks and Spencer, have secured a funding package that will provide the business with greater financial flexibility and assist its growth aspirations.
Established almost 80 years ago, the company operates from two production sites, located in Oldham and Bolton. It employs about 1,200 permanent staff and up to 1,000 seasonal staff at peak production times, such as Christmas.
Yorkshire Bank is supplying Park Cakes with a comprehensive funding package, including refinance and asset finance, aimed at delivering growth. The deal was delivered by Neil McLoughlin and Andy Cole, based in Manchester.
Paul Morton, finance director at Park Cakes, said: “After a competitive process, we can confirm that we have appointed Yorkshire Bank as our new funding partner. We met several retail banks and asset-based lending providers but none, except Yorkshire Bank, were able to offer, under one roof, all the facilities we require.
“The funding package put together by Yorkshire Bank will enable us to further invest in the business and continue with our aggressive growth plans. We have exciting developments in the pipeline over the next two to three years.”
Park Cakes is owned by funds advised by the European mid-market investment firm, Vision Capital.
Owen Malton, Yorkshire Bank’s regional head of specialist and acquisition finance, said: “Park Cakes is a leading manufacturer of retailer own brand cakes and desserts, which is famous in the marketplace for its dedication to quality and innovation.
“We were selected to be the company’s new banking partner, after demonstrating our understanding of the key drivers of the business allied to ABL capability. The business has exciting growth plans in place and we look forward to working in partnership with the Park Cakes team, to help them achieve their aspirations.”