Business: Morrisons announces reversal of decision to close Rathbones bakery in Wakefield following talks with BFAWU

A decision to close the bakery has been reversed following discussions with the bakers’ union.

It was announced in November that the bakery – which was acquired by Morrisons in 2005 – would close following a failure to return the business to profitability.

Morrisons said discussions with the Bakers, Food and Allied Workers Union (BFAWU) have enabled the bakery to remain open on a smaller scale with less staff and making fewer products.

A Morrisons spokesperson said: "Following detailed discussions with colleagues and with the Union, we are pleased that we have agreed a way forward for Rathbones to remain open albeit on a smaller scale.

"The new Rathbones will operate on a different model with lower capacity and making fewer, more specialist bakery products. The site will employ around 138 colleagues, down from the current 378.

"All colleagues were offered voluntary redundancy and 270 decided to take it. Although Rathbones is projected to remain loss-making this year and next, the new plan has a pathway to breakeven in 2027.

"We are grateful to colleagues and the Union for the constructive and realistic discussions which resulted in this agreement, enabling Rathbones to remain open, contributing to the local economy and to Morrisons and our customers."

The 28,000-square-foot bakery in Wakefield previously employed 378 staff members and created 47 products for Morrisons stores, including hot cross buns, loaves, muffins, crumpets, pancakes, naans, pittas, and frozen products. It was acquired from administration by Morrisons in 2005.