Food supplier Bakkavor has announced plans to close its Bakkavor Meals factory in Wigan, putting around 750 jobs at risk.
The manufacturer, which operates 20 factories across the UK supplying retail customers including Tesco, Morrisons, Asda, Sainsbury’s and M&S with soups, dips, salads, desserts, pizzas and breads, said the operation was “unsustainable”. It described Bakkavor Meals as a “low-margin business in a factory that requires significant investment”.
As a result, it said it planned to shutter the facility, with consultation with staff due to commence at the end of this month.
Should the planned closure go ahead, Bakkovar said it expected to see an £80m hit to its business in the first half of next year.
“We appreciate this is a difficult time for affected colleagues and are committed to supporting them,” Bakkavor said. “We plan to offer colleagues alternative roles within our business wherever possible and will also be working on several initiatives to help colleagues secure alternative employment opportunities in their local area.”
The news came alongside the publication of Bakkavor’s latest half-year results. The supplier said like-for-like revenue in the 26 weeks ended 29 June rose by 3.8% to just over £1.1bn, driven by “operational efficiency supporting margin improvement” in the UK and overseas.
Adjusted operating profit rose by 26.7% to £55m, with margin growing from 4% to 4.9% year on year.
“This has been a strong first half for the group, with momentum from our 2023 restructuring activity continuing to support our performance in 2024,” said CEO Mike Edwards.
The ready meal, salads, pizzas and breads specialist also announced an interim dividend of 10% “reflecting strong performance and upgraded outlook”.
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