Sayers Bakery in Liverpool has begun talks with union officials over 150 redundancies, as it carries out an operational review which it said was "triggered by the worldwide escalation of raw materials and soaring energy and fuel costs".

In a statement, the company confirmed that it had entered a 90-day consultation period with staff at the Norris Green site, "which may include proposals for redundancies in certain parts of the business".

It said it had been trying to turn around the financial performance of the business for a number of years, but warned that without further action, certain parts of the business would be put at risk.

Ian Hodson, district official of the Baker’s Food and Allied Workers’ Union, said it was beginning talks with the company. He added that the union would try to persuade the company to keep Sayers in Liverpool, "where it has a long history and tradition, which would be awful to lose".

Confirming that the 90-day consultation ends in July, a spokesman for Sayers stressed that the review was taking place at an operational level focusing on the supply chain and not its retail shops which, he said, would "continue to give our customers the same great products, service and value-for-money that we have always offered".