UK: 2 Sisters: Solway Foods arm "at risk" of closure
2 Sisters Solway Foods in Corby faces possible closure
At least 900 jobs are at risk from the possible closure of 2 Sisters Food Group's Solway Foods business in Corby was announced.
The business has entered into a consultation process with staff. A spokesperson confirmed to just-food "all options" were being looked at with closure "a risk" but being the "absolute last resort."
"Despite considerable investment over the past two years, our current assessment is that on-going additional funding is required just to keep pace with the demands of a modern high-care food production facility," a statement from 2 Sisters read.
"The scale of this continuing investment means the site would potentially not be viable in the long term. In addition, the complexity of serving a wide customer base with an ever-increasing product mix is not a viable proposition for the future," it continued.
At the end of January, just-food reported on staff at the facility voting to strike in a dispute over pay and working conditions.
The 2 Sisters spokesperson told just-food today the announcement of a possible closure had "nothing to do with previous strike activity".
The Corby-based Solway facility manufactures sandwiches and has supplied to customers including Tesco and Costa.
- Rise of prepared foods in US grocers - analysis
- Hershey results, outlook, M&A - the top takeaways
- How are brands organising for e-commerce?
- Work on sugar could stir more clean-label concerns
- Free-from firm BFree Foods - bitesize interview
- Fazer buys European biscuit brands from Mondelez
- Mondelez sees stronger margins, LFL growth
- Murray Goulburn accused of "misleading" the market
- ConAgra sells two bakeries to Alpha Baking
- ABF takes Patak's into frozen ready meals category