Former Employee Rescues Historic Muskoka Bakery From Bankruptcy

Don's Bakery, a staple of the Bala, Muskoka community since it was founded by Don Lloyd in 1947, narrowly avoided permanent closure in early 2026. According to reporting from blogTO, the bakery's owners filed for bankruptcy in the spring, prompting former employee Lily McDonald to intervene.

McDonald, a Toronto resident and former staff member at the bakery, acted quickly in April 2026 to prevent the business from shuttering. To revive the 79-year-old establishment, McDonald quit her job as a jeweller and moved north, eventually reopening the doors by May 15. Because of the bankruptcy proceedings, the transition was complex; McDonald first secured a lease and incorporated a new company before officially purchasing the bakery's assets through bankruptcy in late July, as reported by blogTO.

The rescue was not without friction. blogTO reports that former owners Jana and Bryan Foster publicly denounced McDonald on social media. In an interview with Muskokaregion.com, Jana Foster claimed McDonald did not own the business but merely held a lease agreement. McDonald told blogTO she was disappointed by the outcry but remained focused on the community's needs.

Now managing a team of nearly 40 employees, McDonald has utilized TikTok to attract a younger demographic to the legacy business. Despite the operational challenges of running a business that operates 21 hours a day, McDonald told blogTO she is proud to preserve the bakery's role in the community.