UK grocer Morrisons has chosen to scale back its Rathbones bakery rather than closing the site.
In October, Morrisons announced it was considering the possibility of shutting its Rathbones bakery located in Wakefield, West Yorkshire, after conducting a “thorough review” of the facility.
At that time, a spokesperson for Morrisons indicated that Rathbones Bakery, which the company acquired from administration in 2005, had been “loss-making for a number of years.”
The site employs 378 individuals. All workers were offered voluntary redundancy, and 270 chose to accept it. As a result, Morrisons stated yesterday (14 January) that the bakery will retain “around 138” staff members after the redundancies.
“Following detailed discussions with colleagues and with the union, we are pleased to announce that we have agreed on a way forward for Rathbones to remain operational, albeit on a smaller scale,” declared the UK’s fifth-largest grocer by market share. “The new Rathbones will adopt a different model featuring lower capacity, producing fewer but more specialized bakery products.”
Despite these adjustments, Rathbones is expected to continue operating at a loss during this year and the next, as noted by Morrisons. The retailer has outlined a plan with a “pathway to breakeven by 2027.”
The 28,000-square-foot Rathbones facility is the only baking unit for the Bradford-based retailer, as outlined on its website.
Morrisons confirmed that its Market Street bakery items, which are baked in-store, will “remain unaffected” and will continue providing customers with freshly made bakery products every day.
Rathbones produces over 40 products for the retailer, including naans, crumpets, pancakes, hot cross buns, muffins, and pittas sold at Morrisons supermarkets.