Staff at Durham-based Peters Bakery have reportedly been asked to take a 10% pay cut. The firm has been in discussions with the Bakers Food and Allied Workers Union (BFAWU) regarding the proposal, but a source at the BFAWU said it was too early to say what the final outcome would be. When asked to confirm whether the talks were about a possible 10% pay cut, he replied: "What you have heard is true."

British Baker has not been able to contact anyone at the bakery for further comment.

Established in Durham in 1966, Peters Bakery has 65 shops. The business has suffered two factory fires in the last decade. The first in December 2003, and the second only six months later in April 2004, with the rebuild project following the second blaze costing £7.5m.