RNS Number:2322E
Bakery Services PLC
19 October 2004




Bakery Services plc ('the Company')


The Company's 2004 Annual Report dated August 2 2004 announced the imminent
opening of the first pilot store for a new franchise concept 'Millers Eating
Experience'.


At that time we flagged that the success or otherwise of this pilot store was
likely to become apparent within a short time after the opening date. The store
opened on August 21 2004.


From opening trading has been well below your Board's expectations. . The Board
are now of the opinion that whilst trading can be improved over time, this
cannot be achieved within the financial resources currently available to the
Group.


Under these circumstances your Board have considered it prudent to close the
store and market the lease for sale during the current rent-free period.
Accordingly the store was closed on October 15 2004.


Following the above closure, the Company moved swiftly to significantly cut its
overhead  base to maintain positive operating cash flows from the existing
business. This exercise has now been completed.


The above is clearly disappointing. However the Board has taken prompt action to
secure the financial position  of the Group and is now embarking on a strategic
review of how to enhance shareholder value  going forward.










                      This information is provided by RNS
            The company news service from the London Stock Exchange

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