Most jobs were saved, however, in a pre-pack sale of the majority of the business to a private equity fund backed by the former England footballer Danny Mills. The £7.5m fund, named Enact, bought the 34 most successful of the pie seller’s 65 outlets across the country.
Chris Cormack, Enact’s investment director, said: “The business has struggled to cope with the effects of the pasty tax and a number of underperforming outlets.”
The deal is the first for the Enact fund, which is controlled by the private equity house Endless. As well as Mr Mills, its backers include Tim Whitworth, founder of the clothing chain Republic, and Wayne Bowser, a former HSBC banker.
Enact said it would invest in updating existing West Cornwall Pasty Company outlets, open some new ones and work on “product innovation”. The existing management will remain in place under a new executive chairman, yet-to-be appointed.
David Chubb, a partner at PwC, said: “The last few days have seen an intensive period of activity as we worked with the group to explore the options available to them.
“The company was facing severe difficulties meeting its financial obligations as a result of a combination of factors, and having run out of alternative options, sought the protection of administration.”
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