Ned’s Bake calls in administrators to restructure, sell business

A Melbourne bakery and cafe’s fate hangs in the balance, after the owners called in administrators to navigate its future.

Ned’s Bake owner Ned Radojcic has approached administrators about the financial future of his popular bakery and cafe business. Picture: Andrew Tauber

A popular Melbourne bakery and cafe’s fate hangs in the balance, after the owners called in administrators to navigate its financial future.

Ned’s Bake — which has stores in South Yarra, Middle Park, Port Melbourne and Armadale — entered voluntary administration last week, with directors Ned Radjocic and Maryanne Shearer looking to restructure and sell the business.

The high-end bakery’s four stores and Fitzroy pop-up remain open.

All 85 staff, including 30 full time and 55 casuals across the office, wholesale bakery, stores and pop-up site have been retained for now.

Insolvency firm Pitcher Partners partner Lindsay Bainbridge said it was “business as usual” while Ned’s Bake was presented to market.

Ned’s Bake is a popular brunch hangout for inner-south east locals. Picture: Andrew Tauber

“There is no plan to close any stores for now. This will be monitored alongside the sale process,” he told the Herald Sun.

Mr Bainbridge said Covid derailed Ned’s wholesale bakery operation and was now causing financial headaches for the business.

“The directors invested heavily in Ned’s Cremorne bakery operation pre-Covid, which was intended to supply the stores and wholesale goods to surrounding hospitality businesses,” he said.

“Covid lockdowns heavily impacted the wholesale operation, which has since ceased.

“The Cremorne bakery now only services Ned’s stores, which is an expensive operating model.

The bakery lease also expires in June, and Ned’s would need to relocate to continue baking its products in-house.

“A voluntary administration process provides the most flexibility to restructure the bakery operation and costs while seeing the store operations continue to perform well,” Mr Bainbridge said.

“The owners are genuinely opening the opportunity to new owners as they feel it is in the best interest of the business and its employees, which they have advised is their primary consideration.”

Ned's Bake has four stores in the inner-south east and one Fitzroy pop-up.

Mr Bainbridge denied the cost of living crisis had forced the business to voluntarily enter administration.

“Customer spending has retreated in recent months but is not the primary catalyst for the appointment,” he said.

“We believe this is turning the corner, but a new owner will be able to make decisions about the operating model that can improve the resilience of the business.

“Ned’s is a popular, well-established business, with a strong local identity and top-end premises. It will be a very attractive offer to a business operator with its own bakery facility or a buyer looking to expand the store network, making a company-owned bakery more viable.”

Radjocic and Shearer (T2’s co-founder) first launched the high-end bakery business in South Yarra in 2017.

Creditors are set to meet for the first time to discuss the company’s future next Monday.