The firm behind the collapsed Lathams of Broughton bakery had debts of £1million when it was declared insolvent.

Documents filed with Companies House reveal the firm owed some £450,000 to HMRC alone, with £300,000 of that relating to PAYE and National Insurance Contributions and £150,000 to Corporation Tax.

Business owner Jonathan Barton, who bought the firm from the Latham family in 2019, previously told Blog Preston that the collapse was triggered by HMRC withdrawing from a repayment plan while rising costs of ingredients had also been punishing.

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Other companies owed large sums at the time of insolvency include Preston-based bakery wholesaler BAKO (£63k), Dawn Foods Ltd (£37k), EDF Energy (£61k),The Pension Regulator (£52k), and business lender Time Invoice Finance Ltd (£83K). Dozens of others, including several small businesses from the surrounding area, were also owed thousands of pounds.

According to the statement of affairs filed by liquidator Annette Reeve, only around £32,000 is likely to be recovered from the firm’s assets to go towards the debts. The numbers do not include any money owed to employees, who along with HMRC would be the first in line to receive even a small percentage of what is owed.

Meanwhile, a new business has begun operating from the same site on Caxton Road, Fulwood. Named Barton’s Bakehouse, the shop offers a similar range of goods including bread, cakes and sandwiches. Its website promises “quality handmade desserts, cakes and biscuits using fresh ingredients”.

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