R&R Ice Cream has confirmed it will close its Crossgates facility in Leeds at the end of the year.
A spokesperson for the UK-based firm said the decision to close the plant, which has been under review since April, followed “detailed discussions” with the union representing its workers.
Go deeper with GlobalData
“Since a review of the site’s future was announced on 29 April, the elected consultative group has met regularly to examine all possible alternatives to closure. To help with this process, detailed information has been provided by the company on the proposals put forward and their financial implication,” the spokesperson said.
“The consultative group has now confirmed that it agrees with the company’s assessment that the proposed closure of the factory is the only viable financial option.”
R&R said that while some GBP23m had been invested in the site over the years, the fabric of the building was now in need of “considerable investment”. It added the area was also increasingly residential, which meant it was becoming “much more difficult to manufacture without upsetting residents”.
See Also:
The company said there will be “no loss of jobs in Yorkshire”, with all staff being offered jobs at R&R’s Leeming Bar site in North Yorkshire.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataR&R said the next phase of talks with the union will include ways of assisting employees to travel to the Leeming site, such as providing transport.
R&R acquired the Crossgates site from Treats Ice Cream after the business merged with what was then Richmond Ice Cream. 135 people are currently employed at the site.
Earlier this week, R&R announced the completion of the takeover of the business by private-equity firm PAI Partners. It also said CEO James Lambert would become its chairman, with Ibrahim Najafi, the head of its European business, promoted to chief executive.
