“The combined effect caused the company to have negative cashflow issues which meant that it could not sustain attending to its fixed and variable business expenses, nor its tax obligations when they fell due,” Patel wrote.
Patel was apppointed by Guddo Khan and Shally Rana, directors and shareholders of S S Bakers, Z M R Foods and Cheetal Foods.
Patel said he was working with lawyer Shaheen Azmi.
The two met with staff last Tuesday to let them know about the situation.
Patel told the Herald: “They made gourmet pies and cakes and savouries. It was a very big operation with 35 staff and one franchised store.”
One franchised business is unaffected.