Little Moons is set for major job cuts as it prepares to close a new factory less than a year after it opened.
Its Kettering factory opened in the first half of this year and was branded “a massive moment for all of us here at Little Moons”.
The factory was meant to become Little Moons’ main manufacturing hub as the company considered closing its two London factories and moving everything to the new site.
But after Little Moons undertook a review to ensure a “stable and profitable future” for the business, the new 50,000 sq ft production facility is now set to close. Instead, the business will consolidate all manufacturing back into its sites at Park Royal and Wembley.
It is a major retreat for the company, which became a darling of the food and drink industry after going viral on TikTok in 2021.
“These proposals may lead to job losses and staff affected by the proposal have been informed and are being formally consulted before any final decision is taken,” the company said in a statement.
Little Moons did not confirm how many staff are affected, but according to its latest accounts for 2022, Little Moons employeed 350 people, over 250 of whom work in its factories. This was before the Kettering factory opened.
Former Graze boss Joanna Allen joined Little Moons as its new CEO in June, filling the position left by the surprise exit of Mike Hedges.
Hedges had joined the business in 2022 following an investment by private equity firm L Catterton to help spur growth.
Little Moons has not yet filed its accounts for 2023, but in the 18 months to 30 December 2022 total sales rose to £68.5m from £25.5m on the previous 12-month period. It meant revenue more than doubled on a comparative basis.
In September, Little Moons expanded beyond mochi ice cream for the first time, unveiling a trio of bite-sized frozen cheesecake desserts.
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