UK retail major Morrisons is pondering “the possibility” of shutting its Rathbones bakery in West Yorkshire, following a “thorough review”.
The Wakefield-based business, bought from administration in 2005, “has been loss-making for a number of years”, a spokesperson from the supermarket chain said.
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While the group “tried several routes to return the business to profitability, none have been successful”, Morrisons said.
“Over the last few months, we have conducted a thorough review of the options for the future of Rathbones. This has led us to consider the possibility of closing the site.”
A total of 378 jobs are at risk, Morrisons confirmed.
The spokesperson stressed Morrisons was assessing “all alternative options” and wants to work with our union officials and employee representatives “on how we could change our current business model and safeguard as many jobs as possible”.
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By GlobalDataThe spokesperson added: “The current proposals do unfortunately mean that colleagues at the site are at risk of redundancy and we will do everything we can to help those colleagues affected, including investigating whether there are any other suitable roles elsewhere in the group.”
In a statement, the Bakers, Food and Allied Workers Union (BFAWU) said its members have “reacted furiously” to the possible closure.
BFAWU general secretary Sarah Woolley said: “Since Morrisons were bought out by Clayton Dubilier & Rice in 2021 we have seen the traditional cycle of private equity firm behaviour post takeover that throws workers on the scrapheap without even a glance back.
“They have asset-stripped Morrisons, with our members now bearing the brunt of their mismanagement with this short-sighted decision to close the site.
“This treatment of people is plain wrong and unfair on the hundreds of people who work at the site and who have had their lives turned upside down by this decision.”
According to the union, Morrisons has suggested the “morning goods” production site of the Wakefield bakery could be kept open. BFAWU said the move “smacks of fire and rehire with anyone staying on at Rathbones expected to work for worse pay, terms and conditions”.
BFAWU added it would continue negotiating with Morrisons, “local politicians and relevant government ministers” to support workers help them find new roles.
The 28,000-square-foot Rathbones factory is the Bradford-based retailer’s sole baking unit, according to its website.
Morrisons said its Market Street bakery items, baked in-store, would “remain unaffected and will continue to serve customers freshly made bakery products every day”.
Rathbones produces a range of 47 products for the retailer, including naans, crumpets, pancakes, hot cross buns, muffins and pittas, which are sold at Morrisons supermarkets nationwide
Reports on Morrisons considering a sale of Rathbones emerged earlier this year.
According to The Daily Telegraph in February, the supermarket allegedly hired financial advisors from Deloitte to assist in the sale of the site in Wakefield.
The decision was being made in an effort to cut debt levels, the newspaper said at the time.
Private-equity group Endless, which snapped up bread maker Hovis in 2020, had been named a potential buyer, industry sources told the paper.
However, industry sources told Just Food at the time Morrisons was “approached by prospective buyers all the time but that definitely does not mean a decision has been made”.
In 2012, the supermarket giant revealed plans to shutter its Rathbones bakery plant in Wigan, Greater Manchester as it carried out expansion at the Wakefield site.
