TROUBLED cake firm Inter Link has been targeted for a takeover by an Irish food group.

McCambridge Limited, a company specialising in stoneground wholewheat brown bread, has made an "unsolicited approach" for the business, which employs around 500 people at Shadsworth, Blackburn.

It is believed that the bid centres around McCambridge's desire to expand its ranges of luxury cakes, puddings and ice cream.

A spokesman for Inter Link, which makes confectionery for global brands such as Disney as well as owning the Soreen fruit loaf brand, said the firm was "currently in preliminary discussions regarding the possibility of an offer for the entire issued and to-be-issued share capital."

He added: "These discussions may or may not lead to an offer being made for the entire issued and to-be-issued share capital of Inter Link.

"The board is giving these discussions due consideration without diverting resource from its principal objective of returning Inter Link to profitability at the earliest practical opportunity."

Shareholders are being advised to take "no further action" by management at this time.

In April, Inter Link announced record losses of £15 million and official figures show it has debts of around £60 million.

It blamed competitive market conditions and a reduction in sales and warned of a loss earlier this year.

Last month Inter Link appointed a new chief executive, Ian Croxford.

He replaced Chris Thompson, who had been at the helm for only five months.