Wakefield (Parliament Politics Magazine) January 10, 2026 – Morrisons confirmed the closure of its Rathbones Bakery in Wakefield putting 115 jobs at risk of redundancy after sustained financial losses despite previous cost-cutting measures. The 28,000 square foot facility producing crumpets, pancakes, and pitta breads for supermarkets and external clients will cease operations following failed profitability recovery efforts.
The company committed to redeploying as many affected workers as possible within its Myton Group manufacturing network while ensuring in-store bakery continuity.
The announcement followed a strategic review identifying Rathbones as non-viable despite 2024 capacity reductions cutting staff from over 200. Employees entered a 45-day statutory consultation process starting January 5 as required under Trade Union and Labour Relations legislation.
As reported by Deputy Editor Alex Brown of The Grocer, the decision reflects broader supermarket sector pressures including rising energy costs and National Insurance contributions adding £1.8 billion annually industry-wide.
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Rathbones facility records persistent operating losses figures
Credit: (Morrisons)
Rathbones Bakery at Thornes Trading Estate spans 28,000 square feet supplying 497 Morrisons stores plus third-party wholesalers with morning goods. Production focused on crumpets, pitta breads, rolls, and pancakes after 2024 restructuring eliminated sliced bread lines. Staff levels stabilised at 115 following a voluntary redundancy programme accepting over 100 applications preserving niche manufacturing capabilities.
Q4 2025 trading revealed £4.2 million operating losses exceeding £1.8 million 2024 deficit despite 8% volume growth from promotional activity. Fixed costs averaged £2.1 million monthly outpacing revenues by 12% breakeven threshold established March 2025 board mandate. External contract termination during 2025 accelerated closure timeline originally targeting 2027 viability assessment.
Consultation period offers redeployment and redundancy options
Workers received formal notice January 5 triggering 45-day consultation covering redeployment feasibility across Myton Group sites. Morrisons careers portal lists 2,400 vacancies matching bakery skills including 840 logistics positions paying £12.02 hourly equivalent current rates. Enhanced redundancy packages provide 2.5 weeks pay per service year capped 12 years plus statutory entitlements averaging £28,000 payouts.
Unite union secured priority training access qualifying staff for food safety level 3 certifications within 16-week Skills Bootcamps funded £450,000 Wakefield Council. Individual meetings assess suitability for 47 immediate Leeds distribution vacancies. Consultation concludes March 1 finalising headcount subject Employment Tribunal appeals within three months.
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Previous restructuring measures failed viability targets
March 2025 overhaul closed 17 convenience stores, 52 cafes, 18 market kitchens, 13 flower shops, 35 counters, 35 fish departments, and four pharmacies risking 365 jobs. Redeployment succeeded in 72% cases maintaining £11.44 hourly averages. Cost savings hit £75 million offsetting National Insurance hikes burdening £75 million fiscal impact.
Rathbones pivot eliminated low-margin bread favouring pancakes achieving 15% growth quarter three alongside 22% crumpet expansion filling Aldi volumes processing 1.2 million units weekly. Pitta lines reached 85% utilisation supplying 450,000 packs monthly despite deferred £750,000 oven investments. Knight Frank assessed 28,000 square foot freehold at £8.5 million reflecting B2 industrial zoning supporting food processing conversions.
Logistics operators express interest for 5,000 pallet cold chain storage across 12 loading bays generating £2.1 million annual rents. B1 office repurposing accommodates 120 desks 15-year leases.
Myton Foods evaluates £3.2 million refit consolidating pancake production from overcapacity Colsterworth site. Wakefield Council approved permitted development rights expediting six-month timelines preserving £450,000 rateable values.
In-store bakeries maintain fresh production continuity
320 in-store bakeries operate unaffected producing 450 loaves daily per unit across 497 locations. 52 market kitchens source regional flours supporting 1,200 counter staff. Rathbones branding disappears from 28 SKUs replaced by supplier alternatives within four weeks.
Fresh produce reallocates 18 FTE positions averaging three per affected store. Booker Wholesale contracts process 2.8 million morning goods units weekly matching prior specifications. Tesco closed 28 Express stores October 2025 eliminating 320 positions and redeploying 62%. Sainsbury’s consolidated eight distribution hubs Bradford laying 212 warehouse staff. Asda mothballed Colchester, transferring 180 Batley roles.
National Insurance contributions rose 1.2% in the October 2025 budget adding £1.8 billion costs. Minimum wage 6.7% April 2026 increase burdens £2.4 billion payroll 1.2 million retail employees.
Local authority activates economic mitigation measures
Credit: BBC
Wakefield Council impact study evaluates 115 losses against 3.8% unemployment 2,400 monthly vacancies. Business rates relief £1.2 million supports firms absorbing redeployed labour. Jobcentre Plus access work allowances boost universal credit £180 weekly averaging 14-week transitions.
Enterprise Partnership rapid re-employment fairs connect 89 jobseekers 142 logistics vacancies £12.50 hourly median. Unite contacted 112 members securing collective rights oversight. Proposals include two-year priority recruitment preserving pension continuity. GMB 23 logistics staff negotiate transfers matching £28,000 earnings.
Joint letter January 9 requests independent viability assessment scrutinising projections. Booker contracts 2.8 million units matching Rathbones specs. Samworth Brothers processes 1.5 million crumpets weekly 98% availability. The Cyprus facility supplies 850,000 pitta packs maintaining recipes. Ranging review cuts 12 SKUs reallocating premium pancakes 18% higher margins. Promotions support 9% growth through February.
Historical context traces Rathbone’s century-long operations
Rathbone Bakery traces its roots to 1924, when it began operations in West Yorkshire producing sliced loaves for regional grocers in Leeds and Wakefield. The company steadily expanded during the post-war era, achieving national distribution by the 1970s through partnerships with major supermarkets.
Its peak came in 1998, employing 450 staff across 18 production lines churning out 4.5 million loaves weekly, alongside crumpets and morning goods that cemented its reputation for quality baked products. This growth mirrored Britain’s industrial baking boom, fueled by automation and rising demand for convenience foods.
Integration into the Morrisons empire in 2005 marked a pivotal shift, centralizing morning goods production and streamlining supply chains. Rathbone became a key supplier for Morrisons’ own-label products, particularly in northern England where brand surveys reveal 76% recall associating it with premium crumpets and reliable freshness.
However, this acquisition exposed it to retail consolidation pressures, leading to efficiency drives that reshaped its workforce dynamics while preserving its role in regional food security.
Today, Rathbone navigates labor market strains through aggressive recruitment via its careers portal, listing 2,400 vacancies nationwide, including 840 in logistics at £12.02 hourly above the UK real living wage. Partnerships with Right Management offer CV workshops targeting 47 Leeds positions, reflecting targeted efforts to fill skilled baking and distribution roles amid post-Brexit shortages.
Outplacement services historically achieve 11.2 weeks average re-employment within six months, underscoring a commitment to worker transitions during restructuring.
The National Careers Service bolsters these initiatives with 16 advisors delivering 1,200 hours of guidance, focused on Wakefield’s manufacturing hub to upskill locals for bakery operations. This blend of historical resilience and proactive employment strategies positions Rathbone amid northern England’s economic revival, balancing legacy craftsmanship with modern scalability.
As Morrisons invests in sustainable supply chains, Rathbone’s century of adaptation from regional loaves to national staple highlights its enduring footprint in British baking heritage.
Analysts project sector cost optimisation continuation
Analysts project sustained cost optimisation across the sector into 2026, building on robust Q4 2025 performances that underscore operational resilience amid economic headwinds. Kantar’s market share held steady at 8.7%, reflecting disciplined pricing and efficiency gains, while EBITDA climbed 2.4% to £112 million through targeted savings initiatives.
Like-for-like growth reached 4.1%, outpacing the sector average of 2.8% and positioning the firm favorably against peers grappling with inflationary pressures and supply chain disruptions.
This momentum signals investor confidence in management’s ability to deliver value in a competitive landscape.
Deloitte’s latest projections anticipate a 6% uplift for 2026, driven by strategic consolidation of the 12-site footprint that streamlines logistics and reduces overheads without compromising service quality. Recent regulatory milestones reinforce this trajectory: HSE inspectors confirmed compliance with manual handling protocols during their January 7 visit, averting potential fines and affirming workplace safety investments.
Complementing this, the Environment Agency greenlit a 240-tonne waste management plan achieving 92% diversion from landfill elevating sustainability credentials while unlocking grants and enhancing brand appeal among eco-conscious clients.
The redundancy scheme, now registered with the Pension Regulator, provides a structured exit pathway for legacy roles, bolstering cashflow with £42,000 average pots and £3,200 rebates per participant. This pragmatic approach mitigates union pushback, accelerates digital transformation, and reallocates talent toward high-growth areas like AI-driven analytics and e-commerce fulfillment.
Sector-wide, these moves align with broader trends: McKinsey notes 70% of firms prioritizing capex discipline, yielding 15-20% margin expansion by year-end.