UK bakery company Finsbury Food Group has today announced it will close a Grain D’Or factory in London, putting 250 jobs as risk.
The company said the site, which produces breads, muffins and pastries, has been ‘historically loss-making’.
For the 12 months ended 30 June 2017, it reported an operating loss of £3.3 million on revenues of £28.5 million. It has lost two large contracts since the year end.
Finsbury estimates the costs associated with the closure could reach up to £10 million, spread over a period of up to seven years.
Grain D’Or was acquired as part of Finsbury’s takeover of the Fletcher Group of bakeries in 2014, but it has been struggling due to an ‘environment which creates strong competition for contracts and loss-leading prices’.
Finsbury Food Group said in a release: “Finsbury’s recent statements for the full year to June 2017 demonstrated its resilience in a challenging market. This robust result was achieved thanks to the significant investment it has delivered over the past four years.
“Following the closure, the company’s lower cost base and greater focus on profitable markets means that it is well positioned for future growth, despite current market conditions, and to benefit from any future upturn in the market.
“The company will continue to invest in support of its strategy to drive efficiency and profitable scale and is confident that it is well placed to maintain its leading position in the market.”
Grain D’Or was founded in 1980 and has two bakeries in London supplying retailers and the foodservice industry.
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