Dunedin bakery to close

Press, 28 March 1981, Page 19

Dunedin bakery to close

PA Dunedin Forty-two people will lose their jobs when the Dunedin bakery firm, Jays, Ltd, closes next month. The company started business in Dunedin during the 19205. Jays’ employs 23 people in its suburban' factory, plus two office staff, including the manager (Mr John Cuff) and 17 people in its four stores throughout the city. Mr Cuff said that the company's problems became compounded over a period because of increased overheads. interest rates, raw materials, and labour costs. "Overheads, interest, and raw materials were increasing at a rate of 18 per cent,

but there has only been an increase of 12 per cent in sales. That just doesn't cover, it,” he said. . Mr Cuff said he made the decision to close the factory on Monday before the situation got to the stage where receivers would have to be appointed. "We won't be appointing receivers unless we get creditors who move and try to jump out of line. At this stage we have enough to pay the creditors and pay off the staff quite comfortably,” he said. • Mr Cuff said that there arc negotiations taking place which might see the company's four shops being retained as cake shops with other bakeries.