Morrisons has reached a critical juncture following a “thorough review” of the Rathbones business model.
While the retailer has emphasized that no final decision has been made, it has expressed concerns regarding current proposals, which place the bakery’s employees at risk of redundancy.
According to reports, nearly 400 individuals are employed at the site.
In related news, the sister publication The Grocer has indicated that initial interest in the site from Hovis did not progress beyond early discussions.
“Over the last few months we have conducted a thorough review of the options for the future of Rathbones,” stated a Morrisons spokesperson to Food Manufacture.
“This has led us to consider the possibility of closing the site. However, we are considering all alternative options, and want to work with our partner union BFAWU, together with employee representatives, on how we could change our current business model and safeguard as many jobs as possible.”
Addressing the subject of potential redundancies, the spokesperson noted: “We will do everything we can to help those colleagues affected, including investigating whether there are any other suitable roles elsewhere in the group.”
Ongoing Financial Losses
Rathbones, situated in a 28,000 square foot facility in West Yorkshire, was acquired by Morrisons from administration in 2005. Initially, the acquisition resulted in a “period of growth and investment.”
However, the retailer has reported that Rathbones has faced financial losses for several years, despite various initiatives aimed at restoring profitability.
As a decision regarding Rathbones’ future is deliberated, Morrisons reassured that its in-store Market Street branded bakeries will remain unaffected during this process.
“[Our in-store bakeries] will continue to serve customers freshly made bakery products every day,” the spokesperson reaffirmed.
