Morrisons has announced plans to shutter its Rathbones bakery business, a decision that puts nearly 400 jobs in jeopardy. This move follows the supermarket’s acquisition of the business from administration in 2005.
Despite efforts to revive Rathbones, it has consistently suffered financial losses. A spokesperson for Morrisons stated that various strategies aimed at restoring profitability have not succeeded, leading to the potential closure of the site. The supermarket is committed to supporting affected employees through this transition period, exploring opportunities for redeployment within the company.
Currently, Morrisons is in consultation with the bakery’s 378 employees. Efforts are underway to consider maintaining a smaller, specialised bakery division at the site, focusing on producing select baked goods like muffins and croissants. This endeavour could potentially preserve some positions. Meanwhile, Morrisons ensures that its 450 in-store Market Street bakeries will remain operational and unaffected by this closure.
As Morrisons plans these changes, the company has concurrently made significant progress in reducing its financial liabilities. A major restructuring initiative has seen its debt reduced by nearly 40%, down from £6.2 billion to £3.8 billion. This restructuring has involved extending its term loan facilities to 2030 and enhancing its revolving credit infrastructure, thus reducing overall debt and associated costs.
The impending closure of Rathbones bakery marks a significant shift for Morrisons as it endeavours to streamline operations amidst financial pressures. While some job losses are anticipated, the supermarket’s attempt to retain part of the bakery operation highlights a strategic effort to balance business efficiency with workforce consideration.
