More than 750 jobs are at risk at the fresh food maker Bakkavor after the London-listed group said it would close one of its North West factories.
The company, which is headquartered in London, said today it was looking at axing its Wigan facility after a review revealed it would need “significant investment” to continue operating.
In a statement published to the London Stock Exchange, the firm said: “As we seek to further enhance our returns, we have identified that our Bakkavor Meals Wigan facility is unsustainable with low margin business in a factory that requires significant investment.
“This has resulted in the difficult but necessary decision to announce the potential closure of this site, with consultation to commence at the end of September 2024.
“Should the consultation lead to closure, we would expect to exit c.£80m of business in H1 25.
“We appreciate this is a difficult time for affected colleagues and are committed to supporting them.”
Bakkavor added that it planned to offer its Wigan staff alternative roles within the business “where possible” and would consider initiative to help affected employees with finding other jobs.
The announcement came alongside the company’s most recent half year results, which showed overall revenue had ticked up.
In the six months ending 29 June, 2024, Bakkavor saw its UK revenue increase to just over £1.1bn, up from £1bn in the same period of 2023.
Its operating profit during the period increased by 27 per cent to £58m from £46m.
Bakkavor ‘fully focused on rebuilding margins’
Chief executive Mike Edwards said: “This has been a strong first half for the group, with momentum from our 2023 restructuring activity continuing to support our performance in 2024.
“I would like to take this opportunity to thank all of our colleagues for their continued hard work, commitment and loyalty to the business through this period of significant change.
“We are firmly focused on continuing to rebuild margins and we are pleased to upgrade guidance for 2024 as we look to drive efficiency in every part of our business.
“We are excited about building a stronger Bakkavor as the trading environment improves and we continue to leverage the benefit of the actions we have taken over the last couple of years.
“As such we have good line of sight to deliver further margin improvement as we move into 2025 and beyond.”