Morrisons takes over bakery
British supermarket group Morrisons said today it would save about 400 jobs by taking over part of the collapsed Rathbones Bakeries operation for £15.5m (€22.9m).
Morrisons said it had bought some of Rathbones’ bakeries and other assets from administrators KPMG.
The supermarket group, which took own-label bread from Rathbones before it went into administration, said the deal would ensure continuity of supply for Morrisons and other retailers.
It said the arrangement would also help to provide continued employment for “a substantial number” of Rathbones’ staff, which a spokesman later confirmed as 400.
Rathbones, which had 1,550 staff, went into administration early last month after failing to overcome tough trading conditions and a fire at its Carlisle factory in February.
The company had sales of £100m (€147.4m) last year and supplied Tesco and Morrisons.
Morrisons said it had acquired the Rathbones bakeries and assets in partnership with a newly-created company, Rathbone Kear, in which it had taken a majority stake.
It said it had bought freehold premises at Wakefield, Wigan and Lydney in Herefordshire, while Rathbone Kear had bought bakery equipment and related assets at the same premises and the leasehold of Rathbones’ bakery site in Middlesbrough.
Rathbones, which also features Harvestime and Fresha Bakeries, employed 444 staff at its Walsall head office, with another 409 at Leicester and the remainder at Peterborough, Carlisle, Wigan, Wakefield and Middlesbrough.
Northampton-based Finedon Mill bought it from ISEQ-listed Greencore for €30m in April last year, alongside a separate deal for Harvestime and Fresha Bakeries from William Price & Sons.
The newly-created company captured around 15% of the market for own-label bread to UK supermarkets.
Morrisons owns the Rathbone Kear joint venture with Harry Kear, who owned and successfully ran Rathbones before it was sold to Greencore in 1997.
