Roberts Bakery is cutting up to 250 jobs at its factory in Northwich in north-west England following “unprecedented challenges” in the bread market.
The bakery group said it is facing “significant” economic challenges after the site was hit by a factory fire two years ago, which it said caused two-thirds of production to be lost for over a year.
Between 225 to 250 roles are expected to be cut at the factory, where the company is now restructuring its operational and support functions.
According to Roberts, the UK bakery sector has faced increased competition and overcapacity, leading to downward pricing pressures and reduced demand for standard white bread.
In May, Associated British Foods revealed it was in discussions with private-equity firm Endless as the manufacturer weighed up the future of UK bread arm Allied Bakeries.
ABF, which has its origins in the UK bread sector, said it had put Allied Bakeries up for review amid a “very challenging market”. UK private-equity firm Endless has owned Allied Bakeries rival Hovis since 2020.
The company said “bread volumes have not rebounded as anticipated" after the fire.
A consultation period of at least 45 days will soon begin for the company’s workforce at the factory.
However, employees at the company’s other sites in Ilkeston and Winsford will not be impacted.
Mike Roberts, deputy chairman of Roberts Bakery owner Frank Roberts & Sons, said: “We have faced unprecedented challenges in the last 24 months with longer-term implications for our business than we anticipated.”
The chairman added Roberts does not “take decisions to restructure lightly".
He said: “We know its impact on our people, but at the same time we must ensure we are fit for purpose going forward. We must continue to adapt to the turbulent market conditions, prioritising financial sustainability and operational efficiency to safeguard the future."
Frank Roberts & Sons generated turnover of £76.1m in the 12 months to 31 August 2024, down from £96m a year earlier. Pre-tax profits stood at £20.2m, versus a pre-tax loss of £7m the year previous.
