Supermarket group Morrisons has announced plans to shutter a loss-making bakery, putting nearly 400 jobs at risk. The Bradford-based retailer is considering closing Rathbones after unsuccessful attempts to steer the business back into profitability.
Acquired by Morrisons from administration in 2005, Rathbones has been operating at a loss for several years. In its most recent financial report, for the year ending October 2023, the bakery recorded a pre-tax loss of £3.6m on a turnover of £70.5m, as reported by City AM.
Since 2021, Morrisons has been under the ownership of US private equity firm Clayton, Dubilier & Rice. A spokesperson for Morrisons said: “We acquired Rathbones from administration in 2005. After a period of growth and investment, the business has been loss making for a number of years.
“Although we have tried several routes to return the business to profitability, none have been successful.”
The group said that over the last few months it had carried out “a thorough review of the options” for the future of the bakery. Morrisons’ website says the Wakefield bakery produces products including hot cross buns, seeded loaves, crumpets, pancakes, pittas and “our famous Rathbones Toastie”.
It said: “This has led us to consider the possibility of closing the site. However, we are considering all alternative options, and want to work with our partner union BFAWU, together with employee representatives, on how we could change our current business model and safeguard as many jobs as possible.
“The current proposals do unfortunately mean that colleagues at the site are at risk of redundancy and we will do everything we can to help those colleagues affected, including investigating whether there are any other suitable roles elsewhere in the group.”
Morrisons said its in-store Market Street bakeries were unaffected by the news.
The Morrisons news follows an earlier announcement from Asda detailing its intention to shed 500 roles at its head office while also mandating staff to return to the office for three days a week.
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