Morton’s Rolls to make comeback after bitter court battle with UK Government

A bakery firm famous for its morning rolls is set to rise again after winning a bitter court battle with the UK Government. Morton’s Rolls , in Drumchapel, Glasgow, was in danger of going bust after civil servants claimed a firm that bought it in 2023 was liable for more than £2million in redundancy payments. But after a long tribunal battle, new owner John McIlvogue and backers won the case against the Insolvency Service. McIlvogue said awarding the redundancy costs against his Phoenix Volt Ltd firm would have plunged the business into insolvency again. The ex-Livingston FC owner added: “It’s a weight off my mind and we can now focus on expansion plans without this hanging over us. "It was ludicrous for the UK Government to take such a stance when the redundancy payments all related to the company that -previously owned the business. No new owner could have bought Morton’s in 2023 if they would have been saddled with that kind of liability.” The row centred on whether or not McIlvogue’s firm had enacted a “TUPE” arrangement, formally signing over staff from the former company to the new one – which he denied had taken place. McIlvogue won at the original tribunal but the Secretary of State for Scotland appealed. He said he was relieved ex-staff could finally be paid from the -Government’s Redundancy Payment Service. He said: “After two years in limbo, finally, the former employees of Morton’s Rolls will receive their long overdue redundancy payments. “I stepped in to rescue the iconic Morton’s Rolls bakery from liquidation and to rehire as many of the former bakery workers as I could to start rebuilding the business. “Despite an employment tribunal ruling that the responsibility for legacy redundancy payments from when Morton’s fell into administration did not rest with Phoenix Volt Ltd, the UK Government lawyers decided to challenge that decision and needlessly drew out the process for two years – delaying the payments to former employees, many of whom have been left in dire straits. "I am pleased the decision to throw out the appeal puts this long-running saga to bed, allowing Morton’s Rolls to move forward with confidence and to invest in the Drumchapel bakery, growing the size of the workforce.” Paul Sweeney MSP, who played a key role in facilitating the original rescue bid, said: “I am pleased to finally see the resolution of this dispute which has kept redundancy payments out of the bank accounts of former Morton’s Rolls employees across Glasgow for more than two years now.”