In a statement, fresh prepared foods firm Bakkavor said: “Bakkavor can confirm it is entering into a period of consultation with all 445 employees at its Yorkshire Fresh Fruit (YFF) business in Selby, North Yorkshire with regard to a proposed closure of the YFF business following the loss of a major customer.”
The consultation process would last 45 days, during which time YFF would be working closely with Unite, the site’s recognised union, and considering all representations made on behalf of the company’s employees, said Bakkavor.
‘Unsettling’
“Bakkavor appreciates that this is an unsettling and difficult time for everyone at YFF and would like to stress that this proposal in no way reflects the commitment and hard work of the employees at the site,” the firm added.
“The company will work closely with elected staff representatives to keep all staff appropriately updated throughout the consultation period.”
In a statement released by Asda, the retailer said: “Following a strategic review of our prepared fruit business last year, we took the decision to tender out the contract.
“Unfortunately, this has meant we had to serve Bakkavor’s Yorkshire Fresh Fruit (YFF) site notice, which comes to an end in March 2015.
‘Disappointing’
“We understand this will be disappointing to colleagues who work at the site in Selby but we will do everything we can to support them in seeking future employment.”
Last year had proved a good one for Bakkavor, with the company posting 3.8% revenue growth to £1.5bn in the 52 weeks to December 27. Adjusted earnings before interest, tax, depreciation and amortisation climbed by 8% to £112.9M, it reported.
In January, it announced it had acquired US own-label prepared foods firm B Robert’s Foods in a multi-million pound deal that would boost its overseas operations.
In addition, in the UK, the company revealed plans in November to invest in its chilled bread plant in Crewe while reporting results for its third financial quarter.