BAKERY group Inter Link Foods has stepped in to save a struggling cake business.

Blackburn-based Inter Link has secured an option to buy the William Lusty Group after one of its directors bought the firm from receivers.

Alwin Thompson, chief executive of Inter Link Foods, said the agreement was "an opportunity to save an excellent business".

He added the agreement offered the company the chance to take over William Lusty at "an advantageous price".

Inter Link Foods operates two bakeries at Blackburn and Oldham providing cakes to a range of supermarkets including Asda, Morrisons, Somerfield and Tesco.

William Lusty, based at Heywood, sells premium cakes to the food service industry and up-market retailers including Fortnum and Mason.

On December 30 it was bought for a nominal sum by Hamsard 2095, a company set up for the purpose by Chris Neilson, finance director at Inter Link.

Mr Neilson has granted Inter Link an option to buy up the ordinary shares in his new company for £1 at any point until March 2002.

Mr Neilson was backed in the deal by Bank of Scotland which provided a £400,000 loan to Hamsard to keep William Lusty in operation and has taken £200,000 worth of preference shares in the new company.

Bank of Scotland has also granted an option to Inter Link to buy up the preference shares for £400,000 also before March 2002.

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