According to sources, one of the managers involved in the potential takeovers is Veepul Patel, who, until recently, was bakery md at 2 Sisters and then became food-to-go md.
Referring to the Avana Bakeries and Corby sites, a source close to the business said: “They have both been sold to senior managers.” Regarding Corby, he added: “They are looking to keep it going as a going concern.”
FoodManufacture.co.uk understands the deals to acquire the Avana Bakeries site in Newport, south Wales, and the Solway Foods factory in Corby have not yet been completed.
Lifeline
They offer a lifeline to the 1,400 workers under threat of redundancy at both factories, which 2 Sisters announced plans to close earlier this year.
It is unclear at this stage where Utopia Foods is getting the funding for the acquisitions.
News that two 2 Sisters managers had spearheaded the formation of Utopia Foods and were driving the acquisition of the Avana Bakeries site emerged last week.
Meantime, FoodManufacture.co.uk also understands that 2 Sisters ceo Ranjit Boparan met with MPs in the House of Commons last week to discuss ways to avoid UK plant closures and minimise job cuts.
Protect jobs
In March, Corby MP Andy Sawford backed a House of Commons Early Day Motion (EDM) supporting efforts of the Bakers Food and Allied Workers Union to protect its members’ jobs at Corby.
The EDM, which 22 MPs signed, stated that it “further notes that the redundancies follow on from around 2,400 redundancies at firms, including RF Brookes, Vion and Avana, forced to close within two years of their acquisition by 2 Sisters Food Group”.
This followed the formation in February of a taskforce composed of local council, trade union and government representatives to work to avert the planned closure of the Solway Foods factory.
Financial assistance
Corby Borough Council even offered financial assistance to secure an upgraded facility in the area for workers to move into.
2 Sisters has always maintained the Corby facility needed considerable further investment to make what was an ageing site fit for purpose. When the site was acquired in 2011 as part of the company’s acquisition of Northern Foods, it was known to be in need of upgrading.
It said it had worked with all parties to find solutions for all its site closures since they were proposed.
2 Sisters has refused to comment about its current plans for the Solway Foods and Avana Bakeries sites to FoodManufacture.co.uk.