Martins Foods has been forced to close its Southport bakery after it failed to agree a price increase with a major customer.
The closure, set for January 2013, will result in 35 job losses, with 10 employees to be transferred over to its other factory in Radcliffe.
Neil Martin, managing director, Martins Foods, confirmed that the firm had been trying to get through a price increase, due to the higher costs the bakery is facing from commodities.
“As a team we have worked very hard to turn the business around over the last two-and-a-half years. The business we have left is in great shape, but smaller,” said Martin.
“Products made at our Southport site are being transferred to our Radcliffe Bakery from 1 January 2013,” said the firm.
It added that its famous Mellor branded iced bun range would still be made and available through its website. Martins acquired the Southport site from Mellors bakery in April 2010.
In addition to its retail shops, the Greater Manchester business supplies cakes, iced buns and desserts to supermarkets, foodservice and coffee shop customers.