A Sudden Blow to Local Workers (Image Credits: Unsplash)
Wakefield – Morrisons has confirmed the closure of its Rathbones bakery facility, a move that puts up to 115 jobs at risk amid ongoing challenges in the UK food sector.
A Sudden Blow to Local Workers
Employees at the Rathbones Bakery in Wakefield received the news on January 5, sparking immediate consultations with the supermarket chain. The site, which spans 28,000 square feet, has long supplied morning goods to Morrisons stores as well as third-party clients. This closure marks the second major restructuring effort for the facility in under two years, following a significant downsizing in early 2025. Back then, Morrisons reduced the workforce from 378 to 138 employees while shifting focus to specialist bakery products. Despite those changes, the business proved unsustainable.
The decision stems from persistent losses in the underlying operations, even as statutory accounts for the year ending October 27, 2024, showed a profit of £668,000. Morrisons attributed this discrepancy to accounting adjustments, emphasizing that broader market pressures overwhelmed the site’s viability. A spokesperson for the company noted that the team had made tremendous efforts to develop new markets, but declining volumes and sales proved too much to overcome.
Industry Pressures Fuel the Closure
The bakery sector in the UK faces mounting difficulties, including rising costs and the return of inflation, which have squeezed margins for manufacturers. Morrisons highlighted the loss of a major third-party contract last year as a key factor accelerating the downturn. These external challenges compounded internal issues, making continued operations at Rathbones unfeasible despite genuine attempts to pivot the business.
Under the leadership of CEO Rami Baitiéh and private equity owners CD&R, Morrisons continues a broader cost-cutting strategy across its operations. The closure aligns with efforts to streamline manufacturing, though the company assured that in-store bakeries would remain unaffected. Questions linger about the site’s future: Morrisons has not yet decided whether to sell the property or repurpose it for other uses.
Timeline of Rathbones’ Challenges
The Rathbones facility first drew attention in late 2024 when Morrisons considered full closure, potentially affecting 400 jobs at the time. That threat led to the 2025 restructuring, which aimed to preserve a smaller, more specialized operation. However, trading conditions deteriorated further, with the bakery market becoming even more competitive and unforgiving.
Here’s a brief overview of key milestones:
- November 2024: Initial proposals to close the site emerge, risking hundreds of jobs.
- January 2025: Workforce slashed by over 60% to focus on niche products; site stays open.
- 2025: Loss of significant third-party client impacts revenue.
- October 2024 (year-end): Statutory profits recorded, but underlying losses persist.
- January 5, 2026: Staff informed of full closure; consultations begin.
This sequence underscores how incremental pressures built into an inevitable shutdown.
Implications for Employees and the Community
Consultations with the affected workers are underway, offering a period for discussions on potential redundancies and support measures. Morrisons expressed regret over the decision, praising the dedication of the Rathbones team. Local unions and community leaders may step in to advocate for fair outcomes, given the ripple effects on Wakefield’s economy.
The closure reflects wider trends in retail manufacturing, where supermarkets grapple with supply chain efficiencies. For Morrisons, it represents a painful but necessary step in fortifying its position against rivals. As the consultations progress, attention turns to how the company will handle the human cost of this restructuring.
Key Takeaways
- Morrisons’ closure of Rathbones Bakery threatens 115 jobs but spares in-store operations.
- Sector-wide issues like inflation and lost contracts drove the unviable economics.
- Prior 2025 downsizing failed to stem losses, leading to this final decision.
This development serves as a stark reminder of the vulnerabilities in the UK’s bakery industry, where even established players must adapt swiftly. As Morrisons navigates these changes, the focus remains on supporting those impacted. What are your thoughts on the challenges facing UK supermarkets today? Share in the comments below.
