January 11: Morrisons to close Rathbones Bakery; 115 jobs at risk
The morrisons bakery closure at Rathbones Bakery in Wakefield puts 115 jobs at risk and signals tough choices in UK supermarket restructuring. Morrisons says the site stayed loss-making even after a 2024 shift to specialty items. In-store bakeries will continue to operate, so product availability should remain stable. The move lands alongside fresh price cuts on 2,500 items, which aim to sharpen value and protect market share. We break down what this means for costs, jobs, and investor expectations in Britain’s grocery market.
What’s changing at Morrisons
Morrisons plans to shut Rathbones Bakery Wakefield after a review found the site was still loss-making following a 2024 refocus on specialty items. The site makes wrapped bread and related lines. According to reports, 115 roles are at risk as the business proposes to cease production at the location. Details were first reported by trade media at The Grocer. See more here: source.
In-store bakeries are not affected, so shoppers should still find fresh bread and rolls across stores. Production can be supported by other sites and suppliers, which helps keep ranges on shelves. The morrisons bakery closure targets a single loss-making plant rather than retail counters. For customers, the main change may be behind the scenes as Morrisons simplifies manufacturing and reduces fixed costs.
Why it matters for investors
Morrisons is cutting prices on 2,500 items to stay competitive with discounters. That push needs savings elsewhere to protect margins. The morrisons bakery closure removes a loss-making site, easing overheads and improving asset use. Investors should watch if cost reductions offset lower shelf prices. The key test is whether value gains support volume without hurting profitability.
Volume from the Wakefield plant may shift to alternative bakeries or third-party suppliers. That can change transport routes, input contracts, and lead times. The aim is to keep availability and quality steady while trimming costs. Investors should track fill rates, on-time delivery, and waste levels, as these logistics metrics will show if the reshuffle is working as planned.
Jobs and local impact
There are 115 roles at risk at Rathbones Bakery Wakefield. Morrisons says it will seek to support colleagues, including exploring redeployment where possible. Formal processes will follow company policy and UK employment rules. The morrisons bakery closure focuses on a loss-making site, not store counters. We will look for updates on options offered to staff and final outcomes.
Wakefield and nearby areas may feel near-term strain as skilled bakery roles face uncertainty. Local suppliers and service firms tied to the site could also be affected. Over time, some work may move to other bakeries, softening the impact. Clear timelines, retraining pathways, and job-matching support can reduce disruption for families and the local economy.
What to watch next
Morrisons will communicate next steps after internal processes conclude. Investors should watch for statements on site wind-down timing, redeployment numbers, and any one-off costs. GB News also covered the announcement here: source. We expect further detail on how production is reallocated and the effect on service levels.
Key signals include like-for-like volume trends, private-label bread share, availability, and customer price perception. If price cuts lift traffic while costs fall from the morrisons bakery closure, margin mix could improve. Watch competitor promotions and bakery shelf space, too. Stable service and clear value messaging would support brand trust into 2025.
Final Thoughts
For UK investors, the morrisons bakery closure is a targeted move to stop losses while funding sharper prices. The Wakefield site remained unprofitable after a 2024 shift to specialty items, so Morrisons is concentrating production elsewhere and keeping in-store bakeries open. The near-term focus is on smooth supply, staff support, and clear timelines. The medium-term test is whether cost savings offset deeper promotions across 2,500 products. Track store availability, waste, and private-label bread share to gauge execution. If volumes improve without service slippage, this step can strengthen margins and resilience in a fast-moving grocery market.
FAQs
What exactly is closing and how many jobs are affected?
Morrisons plans to close Rathbones Bakery in Wakefield, putting 115 roles at risk. The decision follows a review that found the site remained loss-making after a 2024 refocus on specialty items. In-store bakeries are unaffected, so shoppers should still find fresh bread and rolls in stores nationwide.
Will the morrisons bakery closure affect product availability in stores?
Morrisons says in-store bakeries will continue to operate, and supply will be supported by other sites and partners. Shoppers should still see core ranges on shelves. The change is targeted at one loss-making plant, not retail counters, which helps protect service levels and product availability.
Why is Morrisons closing the Wakefield bakery now?
The site stayed loss-making despite a 2024 move to specialty production. Closing a single unprofitable plant can lower fixed costs and help fund price cuts on 2,500 items. This fits broader UK supermarket restructuring as grocers balance sharper pricing with the need to protect margins and cash flow.
What should investors watch after this announcement?
Focus on cost savings versus promotion spend, store availability, waste, and private-label bread share. If the closure cuts losses and price cuts drive volume, margins could improve. Also monitor updates on redeployment, one-off costs, and any changes to supplier arrangements as production shifts to other sites.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
