Morrisons is set to close its Rathbones bakery, risking nearly 400 jobs.
- The grocery giant attempted various strategies for the bakery, but none returned it to profitability.
- Hovis showed interest in acquiring the Wakefield facility, but no agreement was reached.
- Morrisons confirms its in-store Market Street bakeries will continue operation.
- A smaller, specialized bakery may emerge as a result of ongoing evaluations.
Morrisons is gearing up to close its Rathbones bakery, a move that places approximately 400 jobs in jeopardy. This decision follows a comprehensive exploration of possible alternatives by the supermarket chain, who reported to The Grocer that options were thoroughly examined. Throughout the year, there was speculation that Hovis might purchase the Rathbones site located in Wakefield, but negotiations did not result in a deal.
A spokesperson for Morrisons stated that a thorough review had been conducted over several months, highlighting the company’s efforts to reverse the losses the bakery has faced over the years. Despite attempts at revitalization through growth and investment, the bakery continued to suffer financial setbacks, described by the spokesperson as being ‘lossmaking for a number of years.’ The spokesperson added that every possible avenue had been explored to bring the business back to profitability but these efforts were unsuccessful, leading to the contemplation of closure.
Morrisons plans to support the affected staff members, whose roles are currently under consultation. “We will do everything we can to help those colleagues affected,” they mentioned, indicating efforts to find alternative roles within the company. Discussions are currently ongoing with 378 employees potentially facing redundancy.
However, the decision to close the Rathbones bakery does not impact the 450 in-store Market Street bakeries. These in-store bakeries, operated by Morrisons, will continue to serve customers without disruption, ensuring continuity in meeting consumer demand.
Moreover, Morrisons is still investigating the potential for maintaining a smaller, specialized bakery to focus on niche products, excluding conventional sliced bread. The company is actively collaborating with its partner union BFAWU, alongside employee representatives, to explore how the existing business model could be adapted to save as many jobs as possible. This comes after Rathbones reported a £3.7 million loss in the financial year ending October 2023.
The closure of Rathbones bakery by Morrisons, an unavoidable outcome of sustained financial losses, emphasizes the need for adaptability in business strategy.
