Greggs rival: popular bakery chain Wenzel’s the Bakers at risk of collapse as HMRC launches legal action, news

• Greggs rival Wenzel’s faces financial trouble after HMRC issued a winding-up petition
• The bakery chain operates 109 stores across London, the Home Counties, and beyond
• Expansion plans stalled after a £4 million drop in profits in recent years
• Liquidation is a possibility, but Wenzel’s insists it will resolve the issue
• No job losses or store closures expected, according to the company

A popular high street bakery chain with more than 100 stores across the UK is facing financial trouble and could be at risk of closure.

Wenzel’s the Bakers - which rivals Greggs for popularity in parts of the country - is in jeopardy after HMRC launched legal proceedings against the company, potentially forcing it into liquidation, reports MailOnline.

Wenzel’s operates 109 stores, primarily in London and the Home Counties, though it also has a few locations further afield, including in Dorset and Northamptonshire.

Over the past 18 months, the chain has expanded across southern England, opening new stores in Winchester, Southampton, King’s Langley, Northampton, and Salisbury.

But on Wednesday, March 19, the Treasury issued a winding-up petition over unpaid debts, the first step in a court-ordered liquidation process. If Wenzel’s fails to reach an agreement with HMRC, it could disappear from the high street.

Despite the legal action, the company insists the issue will be resolved soon, and has said that it does not expect any job losses or store closures.

Read more: Morrisons - full list of UK stores and cafes affected by closures

The bakery chain, founded in London 50 years ago, previously announced ambitious expansion plans across southern England. But profits have declined in recent years, with the latest accounts showing a £4 million drop.

Wenzel’s Chief Operating Officer, Karl Spinks, told MailOnline: “The winding-up notice relates to ongoing discussions with HMRC regarding an outstanding balance.

“We are actively engaged with HMRC and expect this matter to be resolved shortly. We do not expect any redundancies, and we do not expect any store closures.”

What do you think about Wenzel’s future? Have you noticed more high street chains struggling lately? Share your thoughts in the comments section.