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Sandwich, pizza and dessert supplier Bakkavor has announced plans to shut production facilities in Lincolnshire and Leicester.

A consultation period is set to get under way with workers at the two sites, Bakkavor Desserts in Leicester and Bakkavor Salads in Sutton Bridge, which employ more than 900 staff in total.

News of the plans to close the sites comes two months after the business stated it was in a position of financial strength after recording a robust trading performance in its half-year results despite inflationary challenges.

Announcing the closures, Bakkavor stated ‘the macro-economic backdrop and in particular consumer sentiment in the UK remains very challenging’.

The company added that inflationary and consumer headwinds are expected to continue into next year, and that the plans to close the sites had followed a detailed review of its UK operations.

Bakkavor said its other UK sites had the capacity and capabilities to service its customers should the proposed closures go ahead.

“As a business that invests in the development of its people, rewards long service and invests in the local communities in which we operate, it is with great sadness that this difficult but necessary business decision may impact a number of our colleagues,” it stated.

Bakkavor said that, should the proposals go ahead, it will try to minimise job losses and would offer weekly paid staff comparable roles at a different Bakkavor site. It will also be working on initiatives to help other workers get jobs in their local area.

“As with businesses all over the UK, we are having to take decisive action to adapt to the challenging macro-economic backdrop,” said Bakkavor CEO Mike Edwards.

“The decision to close any site is never taken lightly, and we do not underestimate the impact of this announcement on our colleagues and the local communities within which we operate. We remain committed to both protecting our business and doing everything we can to support our people through this difficult time.”