The supermarket chain initially considered closing the 28,000 sq ft facility over a year ago due to an ongoing struggle to regain profitability.
However, just three months later, it opted to scale back operations, refocusing on specialty baked goods such as crumpets, pancakes, naans, and pittas.
Managed by Myton Food Group, Morrisons’ manufacturing division, the closure of the West Yorkshire site threatens approximately 115 jobs, ending months of uncertainty and poor financial results.
A spokesperson confirmed this week that the Rathbones Bakery will close, despite multiple attempts at reorganization and workforce reduction aimed at securing the facility’s future amidst a challenging financial landscape.
“Since the restructuring of the Rathbones business in early 2025 the team have been working hard to try and build a future for the business as a smaller, more focused supplier of specialist bakery products,” they stated.
“Since then, the trading conditions in the bakery market have become even more challenging and despite a tremendous effort by the whole team to develop new markets, volumes and sales have declined significantly, exacerbated by the loss of a large third-party customer, with cost increases and the return of inflation also having a significant impact on the competitiveness of the business. As a result, the sales performance has fallen well below that envisaged by the recovery plan, with the business continuing to report significant losses.”
They added: “Regrettably, having thoroughly reviewed all alternatives, we can no longer see a way back to breakeven and have taken the difficult decision to close the remaining facility.”
“This proposal does unfortunately mean that colleagues at the site are at risk of redundancy. We are however fully committed to doing everything we can to help all those affected, including identifying any other suitable roles available elsewhere in the Myton Group.”
The workforce had already been reduced from 378 to 138 during a significant restructuring last year, and has now declined further to 115 staff, all of whom have been informed of the closure intentions.
Myton has confirmed that a consultation process has been initiated, with plans to identify suitable transferable roles for the remaining Wakefield employees.
While Morrisons ensures that their in-store bakeries will remain unaffected, the retailer has yet to finalize whether they will sell or repurpose the facility.