The upcoming closure also follows Morrisons’ announcement in March last year that 365 other employees were at risk of redundancy
Morrisons is planning to shut down a significant manufacturing facility, according to new reports. The move affecting Rathbones Bakery comes amidst ongoing challenges in the market and is likely to put up to 115 jobs at risk.
Rathbones Bakery, based in Wakefield, currently provides morning goods to the supermarket giant alongside various third-party clients. It’s understood that employees were informed of the changes yesterday (January 5), and the supermarket began consultation straight away.
According to The Grocer, a Morrisons spokesperson said: “Regrettably, having thoroughly reviewed all alternatives, we can no longer see a way back to breakeven and have taken the difficult decision to close the remaining facility.
“This proposal does unfortunately mean colleagues at the site are at risk of redundancy.” The set closure of Rathbones Bakery represents the second instance in two years where Morrisons has announced plans to close the facility.
Although a shutdown was initially proposed for 2024, the supermarket reportedly decided to keep the bakery open, albeit at a reduced capacity.
Reports indicate that over 100 employees took voluntary redundancy at the time, and the company’s focus shifted from sliced white bread to more specialised products. These included pancakes, rolls, pitta breads, and crumpets.
Although the supermarket aimed to expand this site and break even by 2027, The Grocer reported that these plans became unsustainable. It is understood that Myton Foods, the manufacturing division, also lost a major third-party contract last year, which influenced the decision to close.
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The Morrisons spokesperson continued: “We are, however, fully committed to doing everything we can to help all those affected, including identifying any other suitable roles available elsewhere in the Myton Group.” Morrisons has been approached directly for further information.
The upcoming bakery closure also follows Morrisons’ announcement in March last year that 365 other employees were at risk of redundancy. This came as the supermarket proposed closing 52 of its cafés, all 18 Market Kitchens, 17 convenience stores, 13 florists, 35 meat counters, 35 fish counters and four pharmacies.
At the time, Rami Baitiéh, Chief Executive of Morrisons, said: “The changes we are announcing today are a necessary part of our plans to renew and reinvigorate Morrisons and enable us to focus our investment into the areas that customers really value and that can play a full part in our growth.
“Morrisons Cafés are rightly famous for their great quality well-priced food, their place in the local community and their appealing mix of traditional favourites alongside exciting new dishes. In most locations the Morrisons Café has a bright future, but a minority have specific local challenges and in those locations, regrettably, closure and re-allocation of the space is the only sensible option.
“Market Street is a beacon of differentiation for Morrisons and we remain committed to it. But as we modernise we are making some necessary changes to the areas of the model which are simply uneconomic. In some stores where we are closing counters or Cafés, we plan to work with third parties to provide a relevant specialist offer.”
“Although these changes are relatively small in the context of the overall scale of the Morrisons business, we do not take lightly the disruption and uncertainty they will cause to some of our colleagues.
“We will of course take particular care to look after all of them well through the coming changes.”
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