Doughnut firm strikes deal to avoid going bust

Project D has set out a three-year repayment plan

An artisan doughnut company has agreed to pay about a third of its debts, including an unpaid tax bill, in a bid to avoid liquidation.

Project D’s owner Bugibba Independent Ltd has successfully filed a Company Voluntary Arrangement (CVA) over debts of £297,629.60.

It means that rather than face potentially going bust, the Derbyshire-based firm must now pay about a third of the money it owes over the next three years after a majority of creditors accepted the terms.

Despite filing for a CVA, Project D said its “core business is as strong as ever” and it was “grateful for the ongoing support from our loyal customers and partners”.

In 2021, Derby City Council provided an undisclosed grant of public money from its Ascend fund to the firm in the face of the Covid pandemic.

And in 2023, the firm crowdsourced £458,533 of investments from members of the public “to support continued growth” and “make our doughnuts more accessible nationwide”.

Doughnut firm Project D has been supported by a grant from Derby City Council and public crowdfunding

The largest slice of the money owed by the firm was to HMRC, which was due £120,574.51.

Payments due of £45,750 to Max Poynton and Jacob Watts and £9,500 to Matt Bond, Project D’s co-founders, will not be paid.

Other sums owed to organisations that formed part of the CVA included £26,609 to Barclays Bank for a ‘bounce back loan’.

Max Poynton, Project D marketing director, said: “Firstly, we want to emphasise that our core business is as strong as ever.

"As a team we’ve been focusing on bakery efficiencies, large wholesale customers, an improved online gift offering, working with bigger event partners and an improved doughnut offering.

"We’ve had the strongest performing month of May in three years and June is trending even stronger.

“One of our operating companies went through some minor restructuring, due to us closing our Sheffield Meadowhall store.

"This decision does not impact our core business operations, which is the manufacture of premium hand-made doughnuts.

“Our recent opening of a retail store at Heathrow Terminal 2 has proven to be successful, and our online sales have seen a 50% increase compared to this time last year.

“Our commitment to innovation and excellence remains unwavering, and we are grateful for the ongoing support from our loyal customers and partners.

"We look forward to continuing to serve customers with our delicious doughnuts for many years to come.”

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