In November 2024, Morrisons announced that it was evaluating the closure of the Wakefield facility after conducting a comprehensive review of the Rathbones business model, which it initially acquired in 2005.
The proposed closure of the 28,000 square foot site in West Yorkshire aimed to address the concerns of 378 Rathbones employees, who would have faced job losses. However, after productive discussions with the Bakers, Food and Allied Workers Union (BFAWU), Morrisons successfully identified a method to keep the site operational, albeit at a reduced capacity.
New Operational Model
The spokesperson for Morrisons stated,
“The new Rathbones will operate on a different model with lower capacity and making fewer, more specialist bakery products.”
This new structure will enable the retention of 138 jobs, while 270 employees have already opted for a voluntary redundancy package.
The spokesperson continued: “Following detailed discussions with colleagues and the BFAWU, we are pleased that we have agreed a way forward for Rathbones to remain open albeit on a smaller scale. The site will employ around 138 colleagues, down from the current 378. All colleagues were offered voluntary redundancy and 270 decided to take it.”
Despite the potential closure, Morrisons previously indicated that Rathbones had been underperforming financially for several years, despite registering profits shortly after its acquisition.
To address this issue, Morrisons has implemented a new strategic plan aiming for the business to reach breakeven by 2027.
Importantly, the adjustments made to Rathbones’ capacity will not hinder the availability of products at the in-store Market Street branded bakeries.