A bakery chain described by shoppers as “better than Greggs” could disappear from the UK’s high streets after being issued with a legal challenge. Wenzel’s bakery, originally a family-run business launched in London in 1975, has quickly made its mark around the country, expanding to 109 stores in the last 50 years. It has even drawn the ultimate praise from one social media user, Karis Mullings, who said she thought it was “better than Greggs” because Wenzel’s “make[s] fresh baguettes and sandwiches… on site”.

Despite its popularity, the chain is now at risk of liquidation after being issued with legal proceedings by HMRC, MailOnline reported. The Treasury issued a winding up petition against the bakery last week – a procedure generally followed when companies accumulate a large amount og unpaid debt. A winding up petition can be the first step towards a firm going bust – putting Wenzel’s in the hot seat unless a deal is agreed with the taxman.

While the chain told MailOnline that it expects the issue to be resolved speedily, with no “redundancies or store closures”, the future remains uncertain for the brand, with no set date for a hearing to determine whether the order will be granted.

Wenzel’s announced plans to open a raft of new branches beyond its current scattering around London and the Home Counties last year.

The company’s profits have been on unstable footing of late, however, with a £4 million drop between 2023 and 2024, and a downturn of £5.6 million between 2022 and 2023.

The concerning trend is not limited to Wenzel’s, however, with high street competitor Greggs also recording a slow-down of sales growth at the beginning of 2025, dropping to 1.7% from 2.5% last year, despite still managing to turn around £2 billion in profit.

Greggs also closed two branches in Amersham, Buckinghamshire, and Coventry in January, with a third due to shut this month in Cambridge. The large-scale brand is planning to open sites in other parts of the UK this year, however, adding to its over 2,500-strong portfolio.

“The winding up notice is in relation to ongoing discussions with HMRC regarding an outstanding balance,” Karl Spinks, chief operating officer at Wenzel’s said.

“We are actively engaged with HMRC and expect this matter to be resolved shortly. We do not expect any redundancies, we do not expect any store closures.”