Bakkavor proposes closure of two factories impacting 900 jobs
Bakkavor said it would shortly be commencing a 45-day consultation period with affected staff and their representatives at both sites. It said that if the proposals go ahead it would do everything to support staff and try to minimise job losses.
It has committed to offering weekly paid staff comparable roles at a different Bakkavor site, and for those where this is not possible, it will work on initiatives to help them secure alternative employment opportunities in their local area.
The company said it needed to “protect” the business by responding to "changing market conditions" and the "macro-economic backdrop."
It needed to take action “to ensure we can continue to service our customers, protect our financial strength, and secure our sustainable, long-term future.”
Bakkavor said its other UK sites have the “capacity and capabilities” to continue to fully service customers should these proposals go ahead.
Inflation
The company has already said, in its half year results in September, that it is facing a significant level of inflation and consumer headwinds which it expects to persist into next year.
In a statement it said: “Recent investments across our UK operations to enhance our capacity and capabilities provide us with a strong platform on which to further leverage our scale and flexibility. Therefore, as we seek to protect our business, we have undertaken a detailed review of our UK footprint.”
The company said that the business invests in the development of its people, rewards long service and invests in the local communities in which we operate and "it is with great sadness that this difficult but necessary business decision may impact a number of our colleagues."
Mike Edwards, CEO, said: “As with businesses all over the UK, we are having to take decisive action to adapt to the challenging macro-economic backdrop.
Protecting the business
He added:"The decision to close any site is never taken lightly, and we do not underestimate the impact of this announcement on our colleagues and the local communities within which we operate. We remain committed to both protecting our business and doing everything we can to support our people through this difficult time.”
The company has c.15,800 staff working across 29 UK sites.
