The British brand Urban Legend is on the brink of collapse: Over 40 jobs are at risk.

According to The Sun: The well-known British brand available at Tesco and Sainsbury's is on the verge of bankruptcy.

The company, which specializes in healthy baked goods, has suffered significant losses, and over 40 of its employees could lose their jobs.

According to the publication The Grocer, the health-focused brand Urban Legend could disappear in the coming days.

The magazine reports that the company has spent tens of millions of pounds on investments.

Additionally, it has been revealed that the company Leonard Curtis has been appointed as the administrator to conduct the sales process, which has already been completed.

An undisclosed buyer has reportedly acquired the intellectual property and patented technology related to the manufacturing of scientifically grounded HFSS-free donuts.

Administration is expected to begin within the next week or two.

The Urban Legend donuts are no longer available in Tesco and Sainsbury's supermarkets.

The brand reached out to insolvency specialists after failing to secure funding.

Announcement of Administration

Founder Anthony Fletcher also confirmed this information, stating to The Grocer:

"Following the late failure of the last funding round, we are working with the administrator to sell the business."

 

"There have been several offers for the intellectual property, and the business will soon enter administration in the hope of being sold."

Urban Legend was founded in 2021 and raised over 13 million pounds in several funding rounds from venture capitalists, healthcare organizations, and private investors.

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In October 2024, the venture capital firm SnackFutures Ventures, a subsidiary of Mondelez International, acquired minority stakes.

Other investors included the Good Food Fund, JamJar Investments, Eka Ventures, and footballer Harry Kane.

Since the brand's inception, total losses amount to 11.5 million pounds.

About the Brand

Urban Legend's products were characterized by 50% lower sugar content and less fat compared to traditional ingredients, with each donut containing less than 200 calories.

Made in a specially equipped bakery in London, the donuts were produced using a patented technology that involved steaming and air frying.

Before hitting supermarket shelves, the brand was initially available in stores in Brighton and at Clapham Junction train stations, as well as through Deliveroo and Uber Eats services.

Subsequently, Urban Legend expanded nationwide to 200 Tesco and Sainsbury's stores in the UK.

The brand's products were also available in the online store Ocado and at Moto service stations.

The Sun has requested a comment from Urban Legend.

Additional to the Business

Sky is planning to cut 600 jobs as part of a comprehensive restructuring to compete with American streaming giants.

Meanwhile, layoffs could occur in the global company after warnings of job cuts were issued.

B&Q is also planning to eliminate more than 650 jobs as part of a strategic plan to 'simplify' its structure.

In addition, there have been reports of massive pub closures in the United Kingdom.

The popular Italian restaurant chain is set to close six locations and lay off 190 employees to save its brand.