A bread company, might initially be in garbage (8)
I believe the answer is:
buncombe
'garbage' is the definition.
(I know that buncombe is a type of garbage)
'a bread company might initially be' is the wordplay.
'a bread' becomes 'bun' (bun is a kind of bread).
'company' becomes 'co' (abbreviation).
'initially' says to take the initial letters.
The initial letter of 'might' is 'm'.
'bun'+'co'+'m'+'be'='BUNCOMBE'
'in' acts as a link.
(Another definition for buncombe that I've seen is " rubbish".)
I've seen this clue in the Sydney Morning Herald.
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