UK grocer Morrisons has decided to scale back its Rathbones bakery instead of closing the site.
In October, Morrisons said it was pondering “the possibility” of shutting its Rathbones bakery in Wakefield in West Yorkshire following a “thorough review” of the facility.
At the time, a Morrisons spokesperson said Rathbones Bakery, bought from administration in 2005, had been “loss-making for a number of years”.
The site employs 378 people. All workers were offered voluntary redundancy, which 270 decided to take. The bakery will have “around 138” staff after the redundancies, Morrisons said yesterday (14 January).
“Following detailed discussions with colleagues and with the union, we are pleased that we have agreed a way forward for Rathbones to remain open albeit on a smaller scale,” the UK’s fifth-largest grocer by market share said. “The new Rathbones will operate on a different model with lower capacity and making fewer, more specialist bakery products.”
Rathbones is projected to remain loss-making this year and next, Morrisons added. The retailer said it has a plan with a “pathway to breakeven in 2027”.
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By GlobalData
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 more than 40 products for the retailer, including naans, crumpets, pancakes, hot cross buns, muffins and pittas sold at Morrisons supermarkets.
