Significant challenges in the bread market and ongoing economic pressures have forced Roberts Bakery to drastically reduce the workforce at its Northwich site by as many as 250 jobs.
A devastating June 2023 fire at the bread plant in Cheshire resulted in two-thirds of production capacity being lost for over a year, which in turn saw sales swan dive by 21% to £76.1m for the year ended 31 August 2024. Insurance recoveries helped the 138-year-old family firm bounce back to profitability, however, with EBITDA at £24.3m.
Despite its best efforts, Roberts said its bread volumes have not rebounded as anticipated, with many customers seeking out and securing alternative supply contracts during the recovery period.
Demand for standard white bread has been diminishing and to compound matters further, the bakery sector has been faced with increased competition and overcapacity, leading to downward pricing pressures. Roberts previously occupied fourth spot in the UK’s biggest bread brands, but has been overtaken by Geary’s Bakeries-owned Jason’s Sourdough, which is set to leap over Kingsmill as well and into third.
Roberts noted it had responded to the trading difficulties by conducting a comprehensive review of its product portfolio, operational footprint, and long-term business strategy. To ensure sustainability and continued excellence in bread production, the company said it has made the difficult decision to restructure operational and support functions at its Northwich site.
“It is with great regret, that this is likely to result in a workforce reduction of approximately 225 to 250 roles across various departments,” confirmed Roberts in a statement yesterday (3 July), adding that a formal consultation period of at least 45 days would begin shortly. The redundancies represent roughly a third of the company’s total workforce, spread across the Northwich site and its other bakeries in nearby Winsford and over in Ilkestone, Derbyshire.
Affected employees are to be fully supported with individual meetings, practical assistance, and consideration of voluntary redundancy where feasible. Workers at Ilkestone, who produce artisan and speciality breads, and at the biscuit factory in Winsford remain unaffected by the changes.
A Companies House filing on 2 July for the parent company Frank Roberts & Sons Ltd reported that MD Julia Banton had been terminated as a director. Banton – who had been operations director at the time of the fire and then promoted to MD last September – pointed out that the restructuring affects all departments including the board of directors and her role. “However, I’m committed to continue working with the Roberts family and operational teams to support and get through this challenging time; I will continue to be in the business for some time focusing on specific work streams,” she told British Baker.
Commenting on the restructuring, deputy chairman Mike Roberts (a fourth-generation member of the Roberts family) said: “We have faced unprecedented challenges in the last 24 months with longer term implications for our business than we anticipated. We do not take decisions to restructure lightly, we know its impact on our people, but at the same time we must ensure we are fit for purpose going forward.
“We are absolutely committed to providing high-quality bread to customers across the region and maintaining the values that have defined our reputation for generations. We must continue to adapt to the turbulent market conditions, prioritising financial sustainability and operational efficiency to safeguard the future,” added the deputy chairman.
1 Readers' comment