Up to 250 job cuts are planned at a family-owned Cheshire bakery firm that was hit by a factory fire two years ago.
Roberts Bakery said it faced “significant” economic challenges including the fact that “bread volumes have not rebounded as anticipated” since the June 2023 blaze.
In a statement, Roberts said “two-thirds of the bread production capacity was lost for over a year” and “getting back on our feet after the fire has been incredibly tough”.
A formal consultation period of at least 45 days will begin soon for the company’s workforce in Northwich.
Roberts employees in Ilkeston, Derbyshire and Winsford are expected to be unaffected.
The Northwich-based firm, which employs about 700 people, recently reported a pre-tax profit of £20m, up from a loss of £7m in 2023.
Between 225 and 250 roles are expected to be cut.
Its turnover has fallen sharply, from £96m in 2023 to £76m.
The Roberts family has owned the business since its inception in 1887.
In a statement, the company said “severe challenges” including the “global impact of Covid-19, the economic pressures from Russia’s war in Ukraine, and the ongoing cost-of-living crisis” had increased Roberts’ energy bills and raw materials costs.
Roberts also said these factors had impacted their customers’ budgets.
“It is with heavy hearts that we have to reduce the size of our workforce,” the company said.
“This is without doubt the hardest decision our family has ever faced in the bakery’s long history.”
Andrew Cooper, Labour MP for Mid Cheshire, described it as “devastating news”, particularly after the “workforce has shown incredible resilience, especially in the wake of the 2023 fire”.
He said: “Roberts Bakery has been part of the fabric of our community for over 130 years. It’s more than just a business, it’s a local institution that generations have worked for, and taken pride in.”
Cooper added that he visited the bakery in December to discuss the company’s challenges.
He said: “I know this decision will not have been taken lightly. My thoughts are with every employee and their family at this very difficult time.”