Berwick-based Heatherslaw Bakery has been forced to close as a result of the credit crunch, resulting in the loss of 23 jobs.
The bakery had been trading for 22 years.
The traditional hand-baked biscuits and cakes made by the bakery were sold nationally, but managing director Colin Smurthwaite said sales had been in decline since the start of the credit crunch.
“It’s very sad especially as Berwick can ill afford to lose this number of jobs,” he said.
The bakery was founded at historic Heatherslaw Mill on the banks of the River Till, but moved the bulk of the business to Berwick a few years ago. The 18th century mill near Ford still produces quality stoneground flours, oatmeals, oatflakes and muesli and is not affected by the closure of the bakery.
“Heatherslaw Bakery had a tremendous reputation for quality biscuits and cakes and it is sad that the firm has ceased to trade so suddenly,” said Lord Joicey of Ford & Etal Estates.
“It is important to state that the Mill at Heatherslaw was not connected to the firm and so continues to operate normally.”