St. Petersburg Russia: Founder of “Concept Club” bought “British Bakery”

British Bakery
British Bakery

Anna Faustova (founder of clothing brand “Concept Club”) together with a private investor Mikhail Bondar acquired “Baltic bread” company (owns retail brand “British Bakery”). The previous owner of the business was a private entrepreneur Liudmyla Zubakova. Anna Faustova did not disclose the amount of the transaction, only noting that she spent the funds received from the sale of shares in the retailer “Concept Club”. The cost of “Baltic bread” is less than its annual turnover, but overall it is within the comparable magnitude,” — said the businesswoman. According to her, the turnover of the “Baltic bread” in 2015 amounted to about 500 million rubles.

“We paid money for the turnover of the company, its business processes — agreements with suppliers, corporate clients, rented outlets, brand, staff. In addition, the deal includes the building, production and patisserie on Bolshoy prospect of Petrogradskaya side”, — reveals the essence of the purchase Mrs. Faustova.

Investments will pay off in a long-run — five years, says A. Faustova. Long payback period is related to the fact that at the time of transaction the company was in the verge of bankruptcy. “In 2008, the company failed to expand operations into the Moscow market, bakery’s business model ceased to be effective, and as a result “Baltic bread” has ceased to cope with the debt load. At the time of purchase the company’s debts to banks amounted to about 450 million rubles,” — said A. Faustova.

After purchasing the bakery, the investors restructured the debt and have started to work on expanding the business. In 2016 “Baltic bread” earned 30% more revenue than in 2015 — 700 million rubles. In 2017 the new owners are not planning to reduce the speed. Faustova’s assessment –  by the end of 2017 the company’s revenue will reach 900 million rubles.

Currently, half of the “Baltic bread” income comes from selling food via own British Bakery outlets, which are located mostly in rented premises. Since the change of owners, the company opened 5 new outlets, and at present the network consists of 15 confectionery outlets. The plans of the owners include opening another 10 outlets.

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