Morrisons plans to shut down the Rathbones bakery, affecting 400 jobs.
- The supermarket explored all possible options but found the business unviable.
- A potential purchase by Hovis was considered but did not materialise.
- Morrisons’ in-store bakeries will continue operations unaffected by this decision.
- Discussions are underway with staff and unions to explore alternative solutions.
Morrisons, a leading supermarket chain, is preparing to close its Rathbones bakery, which threatens the jobs of 400 employees. This decision follows a detailed evaluation of the business, which despite growth and investment, has been unprofitable for several years. Attempts to return the bakery to a profitable state were unsuccessful, prompting the supermarket to contemplate its closure.
Speculation around a potential acquisition by Hovis had circulated earlier this year as a possible lifeline for the bakery. However, talks between Morrisons and Hovis did not lead to an agreement, leaving the future of the Wakefield factory uncertain.
The spokesperson for Morrisons has assured that their 450 in-store bakeries will remain operational and will not be impacted by the closure of Rathbones. These bakeries continue to meet customer needs as Morrisons investigates maintaining some level of bakery production that excludes traditional sliced bread.
Efforts are being made to support the 378 staff members facing redundancy, with Morrisons committed to exploring other suitable job placements within the group. They have engaged with union partners and employee representatives to discuss potential changes to the business model that might help save jobs.
Rathbones, acquired by Morrisons in 2005 after facing administration, suffered a pre-tax loss of £3.7 million in the last financial year. This financial strain has largely driven the decision to close the bakery, with the supermarket exploring all avenues to safeguard as many roles as possible.
Morrisons is dedicated to assisting employees during this challenging transition and remains engaged in finding viable employment solutions.
