Morrisons is poised to shut down its Rathbones bakery in Wakefield, impacting nearly 400 jobs.
- A comprehensive review revealed the business has been unprofitable for years.
- Despite efforts to negotiate a sale with Hovis, no agreement was reached.
- Morrisons assures that its in-store bakeries will not be affected by this closure.
- Discussions are ongoing to find alternative roles for affected employees and explore a specialised bakery model.
Morrisons is preparing to close its Rathbones bakery in Wakefield, potentially leaving close to 400 workers without jobs. The company has undertaken an in-depth evaluation of the bakery’s future operations, prompted by consistent financial losses despite past growth and investments. Considerable attempts have been made to restore profitability, but none have succeeded.
Earlier in the year, there was speculation of a potential acquisition by Hovis; however, negotiations did not result in a purchase agreement. A Morrisons spokesperson stated that the business has been unprofitable for a number of years despite various strategies to revitalize it, leading to the decision to consider closure of the site.
While Morrisons aims to support affected employees, discussions with 378 staff members are currently ongoing to identify alternative positions within the company. The spokesperson confirmed that efforts will focus on safeguarding jobs as much as possible in collaboration with their union BFAWU.
The Wakefield bakery had reported a pre-tax loss of £3.7 million for the fiscal year leading up to 20 October 2023. This development follows Morrisons’ acquisition of Rathbones in 2005 after it entered administration.
Despite the potential closure, Morrisons has confirmed that its 450 in-store Market Street bakeries will remain operational. These bakeries will continue their regular services to customers. The company is also exploring the possibility of maintaining a smaller, specialised production unit for non-traditional bread products.
Morrisons is taking definitive steps towards closing Rathbones bakery due to persistent unprofitability, while striving to mitigate job losses.
