Μake us preferred on Google SwitzGroup is seeking the release of bank accounts frozen at companies operating nine Bread Factory stores as part of a wider investigation into the Greek bakery chain To Horiatiko and its owner, Angelos Giannakopoulos.
The group submitted its request on Tuesday to Greece’s Authority for the Investigation of Money Laundering and says it is waiting for the review process to be completed. Company sources expressed optimism that the restrictions will be lifted, arguing that the affected businesses operate legally and meet their financial obligations.
According to SwitzGroup, the companies involved are franchise operators employing approximately 1,000 people. The group maintains that their current operations should be assessed independently of the investigation into the businesses’ previous ownership and management.
How Bread Factory came under SwitzGroup
Indian-born businessman Taizoon Fakhruddin Khorakiwala, who heads SwitzGroup, acquired the Bread Factory trademarks through companies affiliated with him.
The deal involved two parts: the purchase of the brand names and the leasing of store premises from franchisees associated with the Koulourades bakery chain. According to information cited in the report, nine of the network’s 10 stores moved under the management of the new business structure through lease agreements.
SwitzGroup says the new operators are established professionals in the sector with no connection to Giannakopoulos, the owner of To Horiatiko.
The group argues that the companies now operating the stores have continued to pay their obligations and taxes while maintaining jobs. It considers the account freezes a threat to businesses it describes as financially sound and is urging authorities to take their present circumstances into account.
SwitzGroup warns of risks to business continuity
The group has also pointed to the potential consequences of prolonged restrictions on the companies’ ability to operate. Its representatives cite Pizza Fan as an example of how a business can lose value when its operations are disrupted.
Their central argument is that the current businesses and their franchise partners should not bear the consequences of issues associated with the network’s past. SwitzGroup says it has worked to ensure that the operations comply with legal and financial requirements and wants that progress to be preserved while authorities examine the request.
SwitzGroup’s investments in Greece
Headquartered in Dubai, SwitzGroup operates in 11 countries and employs more than 5,000 people. It is active internationally in baking, confectionery and food ingredients.
The group entered the Greek market in 2017, during the country’s financial crisis, and has since invested more than €50 million in the country. Its Greek portfolio includes majority stakes in businesses such as Olympic Foods, Artizan Greece, Ioniki Sfogliata, Kriton Artos and the Koulourades chain. Its more recent expansion into retail and food service includes The Bakers in the Hood.
Khorakiwala, a Harvard graduate, took over the family business in 1980, when it consisted of a small bakery employing 12 people. He subsequently developed it into an international group with operations in 11 countries, a workforce of more than 5,000 and annual revenue exceeding $600 million.
The group describes strategic partnerships as central to its business model, emphasizing growth through cooperation and joint ventures.
