Bernard Matthews has reversed on its plan to shut a processing plant in the UK after securing a “new anchor customer”.
The poultry producer announced in August it planned to shut the site in Derby in the English Midlands by the end of the year.
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At the time, Bernard Matthews pointed to “continued significant financial losses”, alongside “external economic challenges” and geopolitical pressures including Brexit, Covid-19, and the conflicts in Ukraine and the Middle East.
On Thursday (5 November), the company backtracked, saying the new customer brings more production volumes to support the site’s ongoing operations as well as offers a basis for future growth.
A new contract means roughly 400 jobs that had been threatened by the planned closure will be retained but another 100 to 150 posts are at risk.
“We are pleased to confirm that the Derby site will remain operational and securing this new customer provides a stronger foundation from which to build a sustainable future,” a spokesperson said.
Just Food has approached the company for additional details.
The Derby factory produces cooked and ready-to-cook poultry products for UK retailers.
The company also committed to supporting affected workers and continue working with local agencies to identify alternative jobs in the area where possible.
Bernard Matthews was bought out of administration in 2016 by Boparan Private Office (BPO), the investment vehicle of Ranjit Singh Boparan, who is also the owner of 2 Sisters Food Group.
In August, 2 Sisters announced a “restructure” at its Rogerstone ready-meals factory in Newport, south Wales, placing 80 jobs at risk. The site employs 1,600 people and makes chilled own-label Indian, Italian, and British ready meals.
Earlier, in February, Boparan acquired German poultry processor Heidemark, which will join BPO-owned Storteboom Food Group.
