Morrisons moves towards potentially shutting down Rathbones bakery, which could put around 400 jobs at risk.
- The decision comes after exploring all possible avenues to rescue the loss-making bakery business.
- Discussions regarding a possible sale to Hovis have ended without a deal.
- Morrisons assures employees it will explore alternative roles within the organisation.
- In-store Market Street bakeries remain unaffected by this decision.
Morrisons is on the verge of closing its Rathbones bakery, a decision that threatens the jobs of nearly 400 employees. After an extensive evaluation, the company acknowledged that despite efforts to revitalize the facility, it remained unprofitable. The idea of selling the Wakefield plant to Hovis was considered but ultimately fell through when no agreement was reached.
A spokesperson for Morrisons emphasised that various strategies had been attempted to bring the bakery back to profitability. However, after a thorough review, closure emerged as a strong possibility. The company is currently engaging with 378 workers at Rathbones, offering support and exploring the possibility of alternative roles elsewhere in the organisation.
Morrisons also expressed a willingness to establish a smaller, specialised bakery that would continue to produce products beyond traditional sliced bread. This move is part of a broader attempt to explore alternative business models and preserve employment where feasible.
The spokesperson stated, “we will do everything we can to help those colleagues affected, including investigating whether there are any other suitable roles elsewhere in the group.” Despite the challenges faced by Rathbones, Morrisons reassured that its 450 Market Street bakeries remain operational and will continue to serve customers.
In 2023, Rathbones incurred a pre-tax loss of £3.7 million, a factor contributing to the current predicament. Morrisons initially acquired Rathbones in 2005 following its previous financial struggles. Efforts were directed at collaboration with the union BFAWU and employee representatives to find a sustainable path forward.
Morrisons’ decision to potentially close Rathbones bakery highlights the challenges of maintaining unprofitable business operations amidst changing market conditions.
