UK retail giant Morrisons is reportedly considering the sale of its Rathbones bakery unit in West Yorkshire.
The supermarket is said to have hired financial advisors from Deloitte to assist in the sale of the site in Wakefield, according to The Daily Telegraph.
The move comes as Morrisons looks to cut down debt levels, the newspaper said.
Private-equity group Endless, which acquired bread maker Hovis in 2020, has been posed as a potential buyer, industry sources told the paper.
However, industry sources told Just Food Morrisons is “approached by prospective buyers all the time but that definitely does not mean a decision has been made”.
When asked for further information by Just Food, Morrisons said it “won’t be making a comment” on the report.
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By GlobalDataEndless did not respond at the time of writing.
The 28,000-square-foot Rathbones factory is the Bradford-based retailer’s sole baking unit.
It produces a range of 47 products, including naans, crumpets, pancakes, hot cross buns, flavoured muffins, and pittas among other baked goods, which are sold at Morrisons supermarkets nationwide.
Around 400 people are employed at the site. It is unclear how a potential sale would affect factory workers.
Morrisons bought part of the Rathbones group in 2005, saving it from administration. In 2012, the retailer announced it would close the baking group’s Wigan site as it looked to expand the Wakefield facility.
