Finsbury Food Group has revealed plans to close its Grain D’Or business, which makes speciality breads and pastries for the likes of Marks & Spencer, Tesco and foodservice providers.
Finsbury said it was proposing the closure of Grain D’Or as it has been historically loss making. The company has implemented a range of initiatives aimed at improving the business, including strict cost controls and introducing new working practices. However, despite this, Grain D’Or still recorded an operating loss during the year to 1 July 2017, on revenues of £28.5m.
Finsbury said it will be entering into a formal consultation period with around 250 workers at the site in Harlesden, North London, concerning the proposal.
Reports suggested that the bakery has been hit by the fall in the value of Sterling since last year’s Brexit vote, which has made key imported ingredients more expensive.
In a statement outlining the Grain D’Or disposal plan, Finsbury said: “As outlined in its recent trading update, on 17 July 2017, the group is performing well.
“The Board believes that despite the current pressures on the industry, it is well equipped to maintain its market leading position and continue to deliver growth and improved shareholder value over the period ahead.”