The Hummingbird Bakery – Pre-Pack Administration & Sale

Moorfields was appointed as Joint Administrators of The Hummingbird Bakery, a London-based bakery brand known for its American-style cakes, cupcakes, and desserts.

The business had been adversely affected by external pressures, including labour shortages as a result of Brexit, increased rents above market rate and subsequently COVID-19 trading restrictions, which together eroded revenues and cashflow.

The appointment led to a pre-pack administration sale to Acropolis Capital Limited on 13 February 2021, preserving much of the business’s operations.

Objectives

• Protect the brand value and preserve ongoing operations.
• Safeguard jobs for existing employees and maintain customer confidence.
• Market the business and assets efficiently to secure a viable buyer.
• Maximise recoveries for the creditors.

Moorfields’ Actions

• Launched an accelerated pre-pack sale process, marketing the business and assets to potential acquirers.
• Negotiated and finalised the sale to Acropolis Capital as the suitable buyer for the brand and operational units  to preserve value.
• Ensured communication with staff, clients, and stakeholders to maintain confidence and assure continuity during the transition.

Results

• The pre-pack sale was completed on 13 February 2021, preserving operations at key sites in Notting Hill, South Kensington and Spitalfields.
• The majority of jobs were saved, safeguarding employment across the business.
• The buyer, Acropolis Capital, committed to reinvigorating the brand and investing in future growth while retaining Hummingbird’s American baking heritage.
• The outcome represented a best-case result for creditors, staff, and the brand, by enabling the bakery to continue operations under new ownership.