Overcast

Overcast

max temp: 9°C

min temp: 6°C

ESTD 1874 Search

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

15:46 09 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.

shares

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.

shares

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

Stage 5 of the Womens Tour passes through Onehouse on their way to Bury St Edmunds last year

Schoolchildren will also be involved in an evening of activities in Bury St Edmunds ahead of the start of a major women’s cycling event.

Paul Rous, of Bruisyard Hall, has launched a tech startup venture with Mark Pearson

A Suffolk entrepreneur has teamed up with a top technology investor, who made millions from a website he created with just £300, to help finance new ideas.

Cloud telecoms company X-on has launched Cuube, a new online communications services platform.

Cloud telecoms company X-on, based at the Framlingham Technology Centre, has launched Cuube, a new online communications services platform.

Jeremy Goulding, front, left, chief executive of Wheatley, is congratulated by Innovatioin Martlesham chair Ian Buxton on winning the first Innovationi Martlesham competition. Also pictured, from left, are Paul O'Brien of BT, Jane Bromley of Wheatley, Mike Ward of Wheatley and Mohamed Abdel-Maguid from University Campus Suffolk.

Software company Wheatley has been named winner of a new competition staged by Innovation Martlesham, the cluster of hi-tech companies based at BT’s Adastral Park research site, near Ipswich.

Total unemployment in the UK has reached a near seven year low, official figures showed today.
Photo: Philip Toscano/PA Wire

Unemployment in the UK has continued to fall and a record 31million people are in now work, according to the final labour market figures before the General Election.

The Nestle Purina plant in Sudbury.

KitKat, Nescafe and Shredded Wheat maker Nestlé said today that first quarter sales had been boosted by an earlier Easter, but with growth dented by currency changes after the Swiss central bank’s shock decision to lift a cap on the franc.

The B&Q store on the North Quay Retail Park in Lowestoft which is closing in January 2016. Picture: James Bass

DIY chain B&Q has announced its Lowestoft store will close at the start of next year, with reportedly 40 jobs being lost.

Suffolk cider and vinegar maker Aspall was named Business of the Year at last year's EADT Business Awards.  From left, Tom McGarry of EDF Energy, Barry Chevallier Guild of Aspall and Sarah Howard,  of SuffolkChamber.  	
Picture: Lucy Taylor

There is now less than a week to go to enter the 2015 East Anglian Daily Times Business Awards.

The team at Ipswich-based software company IJYI.

A start-up software business in Suffolk has secured a place on a Government panel allowing it to bid for the delivery of cloud technology services across the public sector.

Most read

Most commented

Topic pages