Greggs to Close Four Factories, Affecting 740 Jobs
High street bakery chain Greggs has decided to shutter four of its production sites, affecting 740 jobs. The move involves closing factories located in North Lakes near Penrith, Cumbria, Pettigrews in Kelso, Scotland, Seaham in County Durham, and Enfield, Greater London, with distribution continuing from the Enfield site.
The Treforest facility in Wales will also see changes to its manufacturing operations but will remain a distribution centre. Despite these plans, Greggs assures that its retail operations will remain unaffected, citing like-for-like sales growth in its managed shops.
By implementing these changes over the next two and a half years, Greggs anticipates saving approximately £20 million across the 2028 and 2029 financial years. Additionally, the production lines at its Glasgow and Manchester facilities will see a reduction in product ranges, while the Gosforth site will cease its tinned bread production. Some products are expected to be sourced externally from specialist suppliers.
Union Concerns Over Job Losses
Sarah Woolley, the general secretary of the Bakers, Food and Allied Workers Union (BFAWU), has expressed significant concerns about the job impacts, highlighting that the union’s focus is on the affected employees and communities. Despite the looming cutbacks, she noted that Greggs continues to perform robustly as a business.
Reacting to the developments, Greggs’ chief executive Roisin Currie emphasised the necessity for the company to evolve to meet changing customer needs, underlining the importance of strengthening and enhancing efficiency within its manufacturing network. The business employs a total of 33,000 people in the UK, mainly within its retail outlets.
A consultation process with employees is set to begin shortly, and Greggs states that no final decisions have been confirmed yet.
Community Impact and Financial Expectations
The news came as an unwelcome surprise to local representatives like Euan Robson, Kelso and district councillor, who described the impending closure of Pettigrews as a “shock” for the deeply impacted local community.
In terms of financial performance, Greggs reported a 7.7% rise in retail sales in the quarter ending 26 September, contributing to its ongoing expansion strategy, with 95 new store openings this year against 38 closures. The overall chain now comprises 2,796 shops.
The restructuring initiatives, expected to incur a cost of £60 million due to redundancy and disruption expenses, aim to secure an optimistic financial outlook into 2026, leveraging positive trading and cost control.
Reporting based on coverage first published by bbc.co.uk.