Morrisons is planning to shut down its Rathbones bakery, risking almost 400 jobs due to ongoing financial losses.
- Acquired by Morrisons from administration in 2005, Rathbones bakery has consistently been unprofitable over the years.
- Efforts to revive the bakery’s fortunes have been unsuccessful, leading to a decision to potentially close the operations.
- A consultation period with 378 staff members has started to explore future options, possibly saving some roles through a smaller, specialized bakery.
- Morrisons’ 450 in-store bakeries remain unaffected as the supermarket reduces its overall debt significantly.
Morrisons has announced plans to close its Rathbones bakery business, a move which may put 378 jobs at risk. This step comes after the bakery struggled for years to turn a profit, despite being under Morrisons’ ownership since 2005. “After a period of growth and investment, the business has been lossmaking for a number of years,” a Morrisons spokesperson commented. The spokesperson further explained that multiple strategies to return the business to profitability had failed, leaving the closure as a considered option.
Efforts to potentially keep parts of the bakery running are underway. The supermarket is considering maintaining a smaller, specialized bakery division at the site, focusing on producing baked breakfast goods such as muffins and croissants. This approach could save some jobs, reflecting Morrisons’ commitment to supporting its affected employees where possible.
Morrisons has entered a period of consultation with the bakery’s 378 staff to assess future directions and explore any appropriate roles they could transition into within the group. This process highlights the supermarket’s dedication to mitigating job losses and supporting its workforce during this challenging transition.
Meanwhile, the closure plan does not affect Morrisons’ 450 in-store Market Street bakeries, ensuring customers will continue to enjoy their freshly baked products. This stability in their in-store operations comes as a part of Morrisons’ broader strategy to enhance its financial standing, having successfully reduced its debt by nearly 40%. Notable achievements include restructuring debts from £6.2 billion to £3.8 billion and extending loan facilities.
This financial restructuring, alongside efforts to support employees affected by the bakery closure, underscores Morrisons’ strategic focus on long-term stability and efficiency in its operations. The supermarket’s ability to cut costs while maintaining key operations demonstrates its resilience in a competitive market.
Morrisons is navigating financial challenges by closing its Rathbones bakery while prioritizing staff support and operational stability.
