News Pricer.lt

Morrisons scales back Rathbones bakery operations in closure U-turn

Morrisons scales back Rathbones bakery operations in closure U-turn

Morrisons has announced it will keep its Rathbones bakery in Wakefield partially operational, reversing an earlier decision to close the site entirely.

Instead, the supermarket chain will scale back operations, focusing on specialist products such as crumpets, pancakes, rolls, and pittas.

The 28,000sq ft facility will cease production of traditional sliced bread, a decision that follows a strategic review revealed in November. At the time, the retailer had planned to shutter the bakery, initiating a consultation process with 378 staff.

Following discussions with employees and the Bakers, Food and Allied Workers Union (BFAWU), Morrisons has opted for a smaller-scale operation.

While 270 workers accepted voluntary redundancy, the bakery will retain 138 staff, with the supermarket also recruiting to fill vacant roles, The Grocer reported.

“The new Rathbones will operate on a different model with lower capacity and making fewer, more specialist bakery products,” a Morrisons spokesperson explained.

Despite the restructuring, Rathbones is expected to remain lossmaking for the next two years, with plans to break even by 2027.

The spokesperson added, “We are grateful to colleagues and the union for the constructive and realistic discussions, which resulted in this agreement, enabling Rathbones to remain open, contributing to the local economy and to Morrisons and our customers.”

The bakery, which Morrisons rescued from administration in 2005, is part of the supermarket’s Myton Food Group, a network of 18 factories supplying a wide range of own-label products to its stores. While sliced bread will now be sourced from an external supplier, Morrisons has not disclosed further details.

BFAWU general secretary Sarah Woolley commented on the decision: “Whilst we remain disappointed that the company has made the decision to cease bread production after over 30 years of it being made at the site, at least it is not a full factory closure as was initially planned.

“Their vision for a new model does allow some production to continue and hopefully build upon in the future, and we will continue to support BFAWU members through that.”

The announcement comes after speculation last year about a potential acquisition of Rathbones by Hovis, although talks did not progress beyond initial discussions.

Click here to sign up to Retail Gazette‘s free daily email newsletter

News source

Dalintis:
0 0 balsai
Straipsnio vertinimas
guest
0 Komentarai
Seniausi
Naujausi Daugiausiai įvertinti
Inline Feedbacks
Rodyti visus komentarus

Taip pat skaitykite: