The Scottish Government has met with investors in a bid to save Mortons Rolls.
Scottish business minister Ivan McKee held the meeting on Thursday afternoon but no deal has yet been struck.
The iconic Scottish brand, based in Glasgow, ceased trading last week after 58 years in business.
Around 250 jobs at the company’s manufacturing facility in Drumchapel are at risk.
A letter to Mortons Rolls employees – dated March 3 – circulating on social media read: “We are writing to consult you with regard to your employment with Morton’s Rolls Limited being terminated as a result of redundancy.
“Whilst no final decision has been taken, every employee of the company is receiving this letter as all jobs are at risk.”
On Monday, Labour MSP Paul Sweeney announced that Mortons Rolls could be saved following a positive discussion with angel investors.
He tweeted: “I’ve had a positive discussion today with angel investors who are prepared to buy @mortonsrolls, saving the brand and many of the jobs.
“Time is of the essence to secure the factory lease and jobs. I have requested that Scottish Ministers engage with the investors within 24 hours.”
At FMQs on Thursday, Nicola Sturgeon said her government would do everything it could to try and save the business.
She said: “I, like everyone else, was deeply concerned of the company’s decision to cease trading last week.
“In my pre-politics life I used to work in Drumchapel. I know how important a company like this is to people there and to the sense of community.
“Of course, Mortons is an iconic Scottish brand.
“The Scottish Government, working with Glasgow City Council, will do everything we possibly can to see if there’s a rescue package that allows the company to continue trading and to continue to make the contribution that it has made for some time to the community of Drumchapel.”
Scotland’s business minister said the 250 workers affected by the business ceasing trading are the “immediate priority”.
McKee said: “The Scottish Government’s initiative for responding to redundancy situations, Partnership Action for Continuing Employment (PACE), has contacted the company to offer to provide support to affected employees.
“PACE aims to minimise the time people affected by redundancy are out of work by providing skills development and employability support.
“PACE support is already available online and through the PACE Helpline. Two PACE Support and Jobs Fair events will be held at Partick Job Centre on Thursday 16th and Friday 17th March.
“I have held constructive talks with Paul Sweeney MSP and Bill Kidd MSP to discuss how the Scottish Government can support those at risk of redundancy and to consider suitable next steps.
“Earlier today I met potential investors to listen to their proposal.”
The company started making morning rolls in 1965 and later expanded into cakes, tattie scones and more baked goods.
It was originally founded by Bob Morton and Jim Clarke in 1965 at their bakery in Anniesland in Glasgow’s West End.
In 2021, the business announced a six-figure deal with Lidl to provide rolls and other items and said they were making a significant investment in new machines and new jobs.