The Pen-Y-Fan factory operates a single production line, while its Croespenmaen site, equipped with two sliced bread plants, continues to produce Welsh cakes, rolls, and artisanal products. The company confirms that it will effectively meet all market demands from this location.
Of the 200 staff members, the majority will transition to the Croespenmaen site, resulting in fewer than 20 expected redundancies.
The company reassures its customers that they will experience no changes in the products they receive.
Brace’s director, Jonathan Brace, stated: “The bread market has changed dramatically in the last 18 months with people moving away from standard sliced breads. The entire industry is feeling the consequences of a declining market, as evidenced by Morrison’s closing their Rathbones sliced bread bakery, the proposed merger of Allied Bakeries and Hovis, and Robert’s Bakery going into administration.”
Additionally, he highlighted various market challenges, including rising costs tied to wages, gas, electricity, and increased National Insurance contributions, which have added pressure across the sector.
He emphasized, “We see this as a reset of the business, allowing us to confront new market demands head-on.”
Furthermore, he mentioned, “To continue in this market, we need to right-size the business for the future.”
With a legacy of 123 years of baking in the Welsh Valleys, Brace expressed that they have “big plans,” including new product launches and efforts to attract new customers across different segments of the bread market, which are aimed at “securing the long-term future of the business.”
This announcement comes during a turbulent time for the bakery sector, as Roberts Bakery‘s parent company, Frank Roberts & Co, has recently been rescued by Boparan Private Office, a private investment enterprise owned by entrepreneur Ranjit Singh Boparan.
This development follows Roberts Bakery announcing its preparations to enter administration.
Additionally, Warburtons has confirmed its acquisition of the Ilkeston factory from Roberts Bakery.