Sunny

Sunny

max temp: 13°C

min temp: 8°C

Search

East Anglia: Jobs at risk under plans by Gregg’s to end in-store baking

PUBLISHED: 15:46 09 January 2014 | UPDATED: 11:12 10 January 2014

Greggs today announced plans to close 79 in-store bakeries.

Greggs today announced plans to close 79 in-store bakeries.

Retail baker Greggs today warned of more than 400 job cuts, despite reporting that it “traded well” over the Christmas and New Year period.

The chain is planning to close its remaining 79 in-store bakeries over the next 12 to 18 months and will instead supply the stores from its network of 10 regional bakeries which already serve most of its 1,671 outlets.

This is expected to result in 300 jobs becoming redundant and a further 110 posts are also at risk under plans to restructure its management and support teams around the country.

Greggs said in a statement that the remaining in-store bakeries were a legacy of past acquisitons by the group and it would be more efficient for them to be supplied from its larger regional bakeries. The management changes would also “simplify the business and improve efficiency”, it added.

A company spokeswoman said that, as the proposals were subject to staff consultation, the company would not at this stage be publicly naming the branches affected by the plan to decommission its in-store bakeries.

Greggs has more than 20 stores across Suffolk and north Essex, many of them already supplied from a £1million regional bakery in Norwich which the company opened in May 2012.

However, it is understood that a significant proportion of the in-store bakeries affected are in southern and eastern England, into which Greggs expanded from its heartland in the north in the mid-1990s through the acquisition of the former Baker’s Oven chain, which baked in-store at most of its branches.

Greggs said the proposed changes would result in one-off redundancy costs and charges totalling £9million in 2014. They would result in cost savings worth £6m a year from mid-2015, with a benefit in 2014 of £2m excluding the one-off costs.

“We will be entering into a consultation exercise shortly to work with trade union and employee representatives of those affected to refine and develop the proposals,” it added.

Greggs said like-for-like sales rose 3.1% in the five weeks over the festive period and by 2.6% during the fourth quarter of 2013,

Sales for the 52 weeks to December 28 would be up 3.8% in total, although down by 0.8% on a like-for-like basis, and the group’s full-year results were expected to be in line with previous expectations, it added.

1 comment

  • Profit over everything, it's all about the money with these heat and eat type places. Much better to pay a tad more and get real home made food and drink made with quality ingredients.

    Report this comment

    Clungemeister

    Sunday, January 12, 2014

Ipswich Town host Sheffield Wednesday at Portman Road on Saturday, looking to end their Championship home campaign with a victory.

A recent Days gone By featured Cranfield Brothers Mills at Ipswich dock, writes David Kindred.

Rail passengers travelling between Shenfield and Witham could face cancellations or delays to their journeys after a person was by a train.

A Londoner has been kept in custody due to suspicions he may have drugs in his body.

Make this tasty Asian peanut chicken in just 15 minutes.

Officers investigating the circumstances of a crash which killed an 18-year-old woman are appealing for information from drivers.

Police have mounted a transatlantic appeal to find for relatives of a man who died in Ipswich earlier this week.

Classical and mezzo-soprano superstar Katherine Jenkins is the latest addition to the line-up for Latitude this summer.

Taxpayers forked out more than £1million on cars for Suffolk council workers this year, latest figures show.

Community groups and good causes across Suffolk and north Essex have just one week left to apply for a share of a £60,000 pot from Comic Relief.

Most read

Most commented

HOT JOBS

Show Job Lists

Topic pages

Newsletter Sign Up

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24