The Bernard Matthews poultry plant on Shaftesbury Street in Derby will remain open, reversing the closure plan announced in August.
The factory, owned by British businessman Ranjit Singh Boparan, had suffered prolonged financial losses. Combined with wider market volatility, those challenges led management to conclude that operations should end before the close of the year.
However, the company has now withdrawn that decision after securing a new anchor customer. The additional business is expected to create sufficient demand to support continued production at the site.
Management said its immediate priority would be to stabilise the Derby workforce after months of uncertainty and successfully integrate the new customer under the ownership of 2 Sisters Food Group.
The move protects approximately 400 jobs that had been threatened by the proposed closure. Nevertheless, as many as 150 positions remain at risk, and the company is preparing to begin a further consultation process.
Bernard Matthews said it would do “all it can” to assist affected employees. This will include continued cooperation with local support organisations, Derby South MP Baggy Shanker and USDAW regional representative Sharon Khiari.
The decision comes as businesses across the food and beverage industry respond to changing food and drink consumer trends, evolving food distribution trends and wider food manufacturing trends. Investment in food processing technology, food and drink industry innovation and food and drink sustainability will continue to influence the long-term competitiveness of production sites. At the same time, food and drink regulations, food and drink packaging requirements and changing food and drink marketing strategies are adding further pressure across the sector.
“This is very positive news for the Derby community and for the hundreds of colleagues whose jobs will now be saved,” a spokesperson for Bernard Matthews said.
“We are pleased to confirm that the Derby site will remain operational, and securing this new customer provides a stronger foundation from which to build a sustainable future.
“We would like to thank our union and employee representatives for their support and constructive engagement throughout this process, and we are grateful to Baggy Shanker MP for his continued support.”
Baggy Shanker, Derby South MP, added: “This is a huge relief for hundreds of workers and their families, and positive news for Derby. Keeping around 400 people in work is an important outcome. This agreement provides a strong foundation for the future of the site, supporting continued investment and secure jobs in Derby for years to come.
“Since the proposed closure was announced, I have worked with employees, USDAW and the company to protect jobs and secure a future for the site, alongside Cllr Balbir Sandhu and Cllr Gurkiran Kaur. It is welcome that discussions with the company continued even after the original closure decision was made, and that those talks have now resulted in a way forward for the site.
“For those moving into other roles, I am working with the Department for Work and Pensions to identify employment and training opportunities and ensure they receive the support they need.”
