Nearly 400 jobs have been put at risk at Rathbones bakery in Wakefield after owner Morrisons has announced it is considering closing the site.
The business acquired the manufacturing facility from administration in 2005 and, despite a period of growth and investment, it has been loss-making for a number of years. Recent accounts filed on Companies House reveal that the loss after tax for the 52 weeks ended 29 October 2023 was £2.2m after an exceptional impairment charge of £4.5m, while its 2022 loss was £1.4m.
“Although we have tried several routes to return the business to profitability, none have been successful,” a Morrisons spokesperson said.
Over the last few months it has conducted a “thorough review” of its options for the future of Rathbones. “This has led us to consider the possibility of closing the site,” the spokesperson added.
“However, we are considering all alternative options, and want to work with our partner union BFAWU, together with employee representatives, on how we could change our current business model and safeguard as many jobs as possible.”
Morrisons confirmed that the current proposals mean colleagues at the site are at risk of redundancy but that it would do “everything we can to help those colleagues affected, including investigating whether there are any other suitable roles elsewhere in the Group”.
Rathbones produces nearly 50 types of products for the supermarket including hot cross buns, seeded loaves, crumpets, pancakes, naans, and pitta.
The 497 in-store Market Street bakeries remain unaffected by the proposals, the spokesperson added. The retailer operates a scratch baking model with bread, rolls, and doughnuts made from scratch at nearly 90% of its in-store bakeries every day.
Union reaction
The Bakers Food and Allied Workers Union (BFAWU) has reacted ‘furiously’ to the news, claiming it to be “short-sighted”.
“Since Morrisons were bought out by Clayton Dubilier & Rice in 2021 we have seen the traditional cycle of private equity firm behaviour post takeover that throws workers on the scrapheap without even a glance back,” said BFAWU general secretary Sarah Woolley. “They have asset stripped Morrisons, with our members now bearing the brunt of their mismanagement with this short-sighted decision to close the site.”
BFAWU claims Morrisons has suggested that it could keep the morning goods part of the factory open but raised concerns about the impact this could have on employees who remain at the site.
“We will not accept a de-facto fire and rehire approach by these private equity asset strippers. No trade union worth its salt would accept the stripping away of the terms and conditions and pay that the branch has worked hard over a number of years to negotiate,” Woolley added. “The current settlements were negotiated in good faith and are exactly what our members need – we cannot accept a deterioration that would drive many into ‘in-work’ poverty.”
BFAWU said it would continue to talk to the company as well as local politicians and relevant government ministers to help protect its members and find alternative employment for them.
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