A management buy-out supported by bodies including the Welsh Assembly Government and the Welsh Development Agency has secured the future of the Elisabeth the Chef factory.

The company makes cakes as well as bread

Staff and management at the firm in Aberystwyth, Ceredigion, were told in August that the plant would be closed unless a buyer could be found.

But redundancy notices were withdrawn by the company last week when it became clear that buy-out had succeeded

The buy-out team, led by the bakery's general manager Ian Williamson, has secured the majority of the jobs and future production at the bakery on the town's Glanyrafon Industrial Estate.

The new company, to be called Aberystwyth Bakery Limited, will continue the production of confectionary, specialist breads, and high-quality frozen products.

Growth encouraged

The deal was secured with a Regional Selective Assistance grant from the Welsh Assembly Government and a WDA-managed Processing and Marketing Grant.

Finance Wales, the organisation established to encourage the birth and growth of Welsh businesses, has also supported the deal with a loan of �100,000.

"We're delighted to have secured the business so that we can continue production of our high-quality bakery products here in Aberystwyth," Mr Williamson said.

"The bakery is a profitable business with a wide range of customers. We will continue to produce the products our customers like and want, as well as introducing new lines in the long-term."

Local MP Simon Thomas called for help

"The WDA has been particularly helpful in getting us to where we are today and we look forward to continuing working with them in the future."

Economic Development Minister Andrew Davies said he was pleased most of the jobs had been safeguarded.

"Unfortunately, it has not been possible to safeguard all of the jobs.

"But the package of measures we have been able to put together should put the company on a sound footing," he said.

"I know that the new management have ambitious plans for the future and I look forward to learning more about its development."

Tony Harris, chief executive of Elisabeth the Chef, said great efforts had been made to sell the business as a going concern.

"We have enjoyed tremendous support from our customers and have assisted the funding package by settling for a very realistic price," he added.