Morrisons Announces Bakery Closure as 115 Jobs Hang in the Balance

Introduction: A Difficult Decision for a Century-Old Bakery

In a significant blow to workers and the local community, Morrisons has announced it will shut down its Rathbones Bakery facility in Wakefield, placing 115 workers at risk of losing their jobs. This decision marks a challenging moment for the UK supermarket sector, highlighting the mounting pressures facing traditional food manufacturers. Rathbones Bakery dates back to 1893 and was acquired by Morrisons in 2005, rescuing the company from administration. The closure represents not just the loss of jobs but the end of an iconic brand with over a century of heritage in British baking.

Background: Previous Restructuring Efforts

This decision from Morrisons marks the second time within two years that closure plans have been revealed for the site as the retailer continues with its ongoing restructuring plans. The bakery narrowly avoided being shut in November 2024 when it was operating on the verge of closure. Following a restructuring process, the facility remained operational but at a significantly reduced capacity. At the time, the grocer said 270 of the 378 workers had accepted voluntary redundancy, leaving around 138 staff as Morrisons set a goal for Rathbones to reach breakeven in 2027. As part of the restructuring, the bakery abandoned white bread production entirely, pivoting instead to specialty items including pita bread, crumpets, pancakes, and rolls.

Reasons Behind the Closure

Despite these efforts to save the business, the site has continued to struggle financially, prompting the latest announcement from the retailer. Pressures in the UK bakery market, rising costs and the loss of a key customer were cited as the reasons behind the decision to shutter the plant following the 2025 downsizing. Morrisons informed The Grocer that despite what it described as ‘tremendous’ efforts to expand the site’s output, the business remained loss-making. A Morrisons spokesperson said: “Regrettably, having thoroughly reviewed all alternatives, we can no longer see a way back to breakeven and have taken the difficult decision to close the remaining facility”.

Impact on Workers and Future Plans

The current 115 workers were notified of the closure proposal on 5 January with a consultation launched immediately. Myton Food Group said it was fully committed to doing everything we can to help all those affected, including identifying other suitable roles elsewhere in the company. Importantly, Morrisons’ in-store bakeries will not be impacted by the closure. The 28,000 square foot facility’s future use has yet to be determined, with the supermarket chain still weighing options to either sell or repurpose the premises.

Conclusion: Broader Implications for the UK Bakery Sector

The Rathbones closure reflects wider challenges facing the British bakery industry. This announcement comes amid a difficult period for UK food manufacturers, with inflation, rising energy costs, and intense competition creating what many describe as unprecedented market conditions. For the 115 workers affected, the coming weeks will be crucial as consultation processes unfold. The closure serves as a stark reminder of how economic pressures and changing market dynamics continue to reshape the UK’s food manufacturing landscape, even for businesses with deep historical roots in their communities.