Wenzel’s the Bakers, a popular high street bakery chain known for its rivalry with Greggs in parts of the UK, is facing an uncertain future.
Legal action initiated by HM Revenue and Customs (HMRC) has put the company at risk of financial collapse, raising concerns about its long-term stability.
HMRC’s Legal Action and the Risk of Liquidation
HMRC has filed a winding-up petition against Wenzel’s, a move that could lead to the company’s liquidation if outstanding tax debts are not resolved.
This legal step, taken on March 19, is a last resort for recovering unpaid debts and could result in the bakery disappearing from the high street if an agreement is not reached.
Despite this looming threat, Wenzel’s remains optimistic.
The company, which operates over 100 stores across London and the Home Counties, has stated that it expects the issue to be resolved soon.
Chief Operating Officer Karl Spinks reassured customers and employees, emphasizing that no store closures or job losses are anticipated.
Declining Profits and Leadership Changes
Financial difficulties have been mounting for Wenzel’s, with recent reports showing a significant drop in profits.
In the year leading up to March 31, 2023, the company’s profits fell to £1.6 million—down sharply from £5.6 million the previous year.
This decline has been accompanied by leadership changes, with three company directors stepping down since the last financial reports were published.
The bakery, which has been in business for 50 years, had ambitious expansion plans just a year ago.
However, challenging market conditions and declining consumer spending have made growth more difficult.
The company has until March 31, 2025, to submit its latest financial statements, which may shed more light on its current position.
The Wider Struggles of High Street Bakeries
Wenzel’s is not the only bakery chain facing difficulties.
Even industry leader Greggs has experienced financial strain, with its shares falling by 10.6% at the start of the month.
Weaker consumer confidence, economic uncertainty, and unfavorable weather conditions have contributed to slower sales growth.
Despite generating £204 million in profit, Greggs reported a modest year-on-year sales growth of just 1.7% for the first nine weeks of 2025, reflecting a broader trend of financial challenges in the sector.
What Lies Ahead for Wenzel’s?
The outcome of the winding-up petition remains uncertain, with no court date currently set.
If Wenzel’s can successfully negotiate with HMRC, it may be able to stabilize its finances and continue operations.
However, if an agreement is not reached, the beloved bakery chain could face closure.
For now, Wenzel’s remains committed to business as usual, assuring customers that stores will remain open and jobs are secure.
But with increasing financial pressures on high street bakeries, the company’s future will depend on how it navigates this critical period.