The shockwaves from the Choriatiko case have reached Bread Factory, with bank accounts frozen. On 25 October, as part of the investigation into the Choriatiko case, dozens of bank accounts were frozen, including accounts belonging to nine companies linked to the operation of the Bread Factory network.
These are Koulourades General Supply and eight franchise companies, which have taken over the operation of nine stores in recent months. Two days after the accounts were frozen, last Tuesday, the Khorakiwala camp filed a memorandum seeking to have the freeze lifted, so that normal financial activity could resume at the companies involved in the Bread Factory restructuring plan.
The stores remain open and are serving customers, but their POS terminals are out of service because the accounts have been frozen.
The Khorakiwala-owned Switz Group has been taking steps since the spring to preserve and reorganise the network. The process has accelerated in recent months, with new franchise companies gradually taking over the operation of the nine stores and Koulourades General Supply being entrusted with their central supply.
At the same time, the Khorakiwala camp acquired the Bread Factory trademarks and signed new lease agreements. According to sources close to Switz Group, these moves have enabled the business to continue operating and preserved around 1,000 jobs, while the new companies have already paid more than €1 million in taxes and social security contributions.
For Switz Group, Bread Factory is part of a broader business presence in the Greek market spanning a decade. Taizoon Khorakiwala entered the Greek market during the economic crisis, when capital controls, the risk of Grexit and uncertainty deterred most foreign investors.
Since then, Switz Group has expanded its footprint in the Greek market through both acquisitions and organic growth, extending its activities beyond baking and confectionery.