Warburtons, the leading UK bread producer, is set to close its Giles Foods facility in Milton Keynes, Buckinghamshire, according to a report in British Baker.
The site, which provides contract manufacturing services for private label customers, employs 218 staff.
Commenting on the proposed closure, Warburtons said the move was a result of “significant ongoing challenges facing the business”.
In the year to 26th September 2015, British Baker reports that Giles Food posted a loss before tax of £9.7 million ($12.4 million) from turnover of £22.7 million ($29.1 million). In the same period, the Warburtons group reported a 0.7% increase in turnover to £551.5 million ($707.2 million) but a 2.4% drop in operating profit.
Giles Foods was bought by Warburtons in 2013 and largely produces unbranded baked goods such as garlic bread, dough balls, Danish pastries, tarts and buns. Aside from its Milton Keynes site, it operates a facility in Warminster, Wiltshire.
Source: British Baker