Morrisons has handed Rathbones a last-minute reprieve, with the supermarket set to run a slimmed-down operation at the bakery rather than closing the site down in its entirety.
The 28,000 sq ft manufacturing facility in Wakefield will no longer bake traditional sliced bread, instead focusing solely on specialist products such as crumpets, pancakes, rolls and pittas.
It follows news revealed by The Grocer in November that Morrisons planned to shutter the factory after a strategic review, and had entered into consultation with 378 staff.
However, following discussions with the Bakers, Food and Allied Workers Union (BFAWU) and employees, Morrisons opted to keep the lossmaking site open on a smaller scale.
The Grocer understands all workers were offered voluntary redundancy, with 270 taking up the supermarket’s offer. Rathbones will continue to employ 138 staff, with Morrisons recruiting for some vacant positions.
“The new Rathbones will operate on a different model with lower capacity and making fewer, more specialist bakery products,” said a Morrisons spokesman.
Rathbones – which fell into the red in the year to 20 October 2023 with pre-tax losses of £3.7m – is expected to remain lossmaking for the next two years but is forecast to have “a pathway to breakeven in 2027”, the spokesman added.
“We are grateful to colleagues and the union for the constructive and realistic discussions, which resulted in this agreement, enabling Rathbones to remain open, contributing to the local economy and to Morrisons and our customers.”
BFAWU general secretary Sarah Woolley said: “Whilst we remain disappointed that the company has made the decision to cease bread production after over 30 years of it being made at the site, at least it is not a full factory closure as was initially planned.
“Their vision for a new model does allow some production to continue and hopefully build upon in the future and we will continue to support BFAWU members through that.”
Morrisons rescued Rathbones in 2005 after the bakery collapsed into administration. The site is part of the supermarket’s Myton Food Group manufacturing operation, which runs 18 food factories to supply its stores with a wide range of products.
The chain will source its own label sliced bread from an outside supplier, but the spokesman was unable to confirm any further details.
Last year, speculation swirled around a potential acquisition of Rathbones by Hovis, but talks between the two parties did not progress beyond the early stages.
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