Morrisons plans to close its Rathbones bakery, risking nearly 400 redundancies.
- Efforts to sell the factory to Hovis were unsuccessful.
- Despite attempting various strategies, the bakery has continued to operate at a loss.
- Discussions are ongoing to support affected employees and explore potential job retention.
- Morrisons’ in-store bakeries remain unaffected.
Morrisons, a leading supermarket chain, is poised to close its Rathbones bakery, placing nearly 400 jobs at risk. The company had considered selling the Wakefield-based facility to Hovis, but negotiations did not result in an agreement.
After conducting an extensive review, Morrisons concluded that the bakery has been financially unsustainable for years. Despite efforts to restore profitability through different means, the business has continued to operate at a loss, prompting the consideration of closure.
The company is in discussions with 378 employees from the bakery, emphasising their commitment to supporting those impacted. This includes exploring opportunities for redeployment within the Morrisons group. The company is working closely with trade union BFAWU and employee representatives to investigate alternative business models that might preserve jobs.
Despite the impending bakery closure, Morrisons confirmed that its 450 Market Street bakeries will remain operational. These bakeries are not affected by the potential closure of Rathbones and will continue their service to customers.
Rathbones faced significant financial challenges, culminating in a £3.7 million pre-tax loss over the year ending October 2023. Acquired by Morrisons in 2005 following a period of administration, the bakery has struggled to become profitable under its ownership.
The closure of Rathbones bakery represents a challenging chapter for Morrisons as it seeks to navigate financial adversity and support its workforce.
