By Hannah Ahmed
Copyright birminghammail
Popular bakery brand, Urban Legend, is allegedly just days away from collapse after racking up double digit-losses – with 40 at risk of redundancy. The company, famous for its doughnuts which are stocked at Tesco and Sainsbury’s , have reportedly lined up administrators at recovery firm Leonard Curtis, with a marketing process to find a potential buyer now at its end, the Grocer said. It is understood a deal has been agreed by an unnamed buyer for the IP address and patented technology behind the brand’s non-HFSS goods. The outlet reported the business had burned through tens of millions of pounds of cash from its investor, with its administration expected in the course of the coming days. READ MORE: Farmfoods pulls pasta from all shelves in England, Northern Ireland and Wales It was alleged the brand hired insolvency specialists following a recent funding round failure, a source claimed to the newspaper. The doughnuts are no longer being stocked at the supermarkets referred to. Founder, Anthony Fletcher, told the publication: “Following the late collapse of a recent fundraising round, we have been working with an administrator to market the business. “There have been multiple offers for the IP, and the business will shortly enter administration with the expectation that this will be sold.” READ MORE: Sainsbury’s urgent E.coli alert as two own-brand products pulled from all UK stores READ MORE: Tesco, Morrisons, Waitrose remove cereal from shelves over deadly health risk Urban Legend was first launched by Mr Fletcher back in 2021, raising more than £13 million across a number of rounds from various firms. In October 2024, SnackFutures Ventures, the venture capital investor arm of Mondelez International, took a minority stake in the company. There were also some notable other investors, including footballer Harry Kane, Good Food Fund, JamJar Investments and Eka Ventures. However, since the brand was launched it has recorded losses of £11.5 million.
