At least 650 jobs at 2 Sisters Food Group’s Avana bakery site in Newport are at risk after the UK firm lost a contract with Marks and Spencer to competitor Park Cakes.

After a 77-year relationship with the bakery, M&S pulling the plug on the business means the site risks closure, a spokesperson told just-food in a statement today (10 Februrary).

While the spokesperson could not disclose the value of the contract, he confirmed the contract represented 85% of Avana’s production.

“Clearly this is a huge setback to our cakes business and our operations in Wales, but we are determined to work hard to reverse the situation. As a matter of urgency, we are now making every effort to rebuild the business by seeking alternative customers and opportunities which will minimise the impact of this contract loss.

“Jobs are at risk,” he told just-food. “However, this is just the start of a consultation – we’re going to try to do everything we can to salvage the situation. We remain hopeful we can retain our business in Newport.”

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