The firm said it had made the “difficult decision” to close its Bakkavor Meals site on the outskirts of Wigan and will offer colleagues alternative roles within the business where possible.
The decision was attributed to the site requiring “significant investment” and not delivering a profit.
As a result of the decision, a consultation with the people employed at the site will begin on 30 September 2024. Set to take place for a minimum of 45 days, Bakkavor will also engage with trade union representatives.
According to Wigan Today, staff were told earlier this week that Bakkavor plans to shut the plant by the end of February 2025.
The outlet also reported that the leader of Wigan Council, David Molyneux, has pledged to support those affected by the site’s closure after describing the decision as "deeply disappointing".
Bakkavor statement
In a statement explaining the decision, a spokesperson said: “Bakkavor has set out clear priorities to ensure we are in the best place to operate efficiently, whilst also being able to deliver for customers. As we continue to deliver on these priorities, we can confirm we have made the difficult decision to propose the closure of our Bakkavor Meals site in Wigan which employees 750 people.
"Our Wigan site, one of our 21 UK factories, requires significant investment which, combined with the fact that it is unprofitable, makes the position unsustainable. We’ve undertaken a thorough review of options and despite our best efforts it has not been possible to find a viable solution. Furthermore, we believe there is no realistic prospect of being able to do so in the foreseeable future.
"Our priority now is focused on working through the consultation process with all colleagues during this difficult time.”
The firm also announced its financial results for the first half of 2024 on 5 September, which noted that should the consultation lead to the site’s closure, it would expect to exit close to £80m of business in the first half of 2025.
Bakkavor also committed to “several initiatives to help colleagues secure alternative employment opportunities in their local area”.
Furthermore, Bakkavor has announced that chief financial officer Ben Waldron is set to leave the firm early next year. Lee Miley has been named as his replacement.
