Rathbones Bakeries, which also features Harvestime and Fresha Bakeries, employs 444 staff at its Walsall head office.

The group also employs more than 1,000 people at sites in Leicester, Peterborough, Carlisle, Wigan, Wakefield and Middlesbrough.

Rathbones, which had sales of �100m last year, suffered a fire at its factory in Carlisle in February.

'Positive outcome'

Corporate recovery experts from KPMG have been appointed.

KPMG partner Richard Hill said: "We believe we can achieve a sale of the business as a going concern and we have already received expressions of interest from potential buyers.

"We are confident that with the support of the staff, suppliers and customers, we will be able to achieve a positive outcome."

Rathbones, which supplies Tesco and Morrisons, was bought by Northampton-based Finedon Mill for �20.6m from food group Greencore in April 2004.

Harvestime and Fresha Bakeries were bought by the William Price group of companies in a separate deal.