Sunny

Sunny

max temp: 20°C

min temp: 13°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

Sheepen Place office development scheme at night - artist's impression

Proposals have been submitted for two new office buildings planned for central Colchester.

Greene King chief executive Rooney Anand, left, shaking hands with Mike Tye, chief executive of the Spirit Pub Company, outside Spirit's headquarters in Burton uponTrent following the sale deal.

Jobs are at risk at Greene King following a major acquisition earlier this year.

EDF workers are unhappy over pay.

Hundreds of workers at energy giant EDF are to stage a 24-hour strike in a row over pay.

Amos Smith who is launching a new yoghurt called Mossy's from a secret family recipe.

A popular yogurt made to a secret family recipe has been revived by a young food entrepreneur.

Land next to Burger King is for sale

Tesco, Mothercare and Toys R Us could soon have a new neighbour at Copdock Mill

A city worker looks at a stock ticker screen at the London Stock Exchange in the City of London.

Volatile stock market conditions took their toll again today as the FTSE 100 Index plunged after sharp gains in the previous session.

The Director General of the British Chambers of Commerce, John Longworth, has met with the Suffolk Chamber of Commerce in Ipswich to hear of their work delivering support to firms across the region.

The Director General of the British Chambers of Commerce, John Longworth, met with the Suffolk Chamber of Commerce in Ipswich to hear of their work delivering support to firms across the region last week.

Sainsbury's supermarket was only one of Britain's big four supermarkets to grow sales in the last three months - but still saw its number two spot in the sector retaken by Asda.

Sainsbury’s was the only one of Britain’s big four supermarkets to grow sales in the last three months - but still saw its number two spot in the sector retaken by Asda, according to latest industry data.

Family law expert Georgina Hall, now a partner at Prettys

East Anglia law firm Prettys, which has offices in Ipswich and Chelmsford, has announced the promotion of family law expert Georgina Hall to partner, bringing the total number of partners in the firm to 10.

Poundlands £55 million acquisition of rival 99p Stores has provisionally been given the green light.

Poundland’s £55 million acquisition of rival 99p Stores has provisionally been given the green light.

Most read

Most commented

Topic pages