The retailer told Food Manufacture that it has reached this point after completing a “thorough review” of the Rathbones business model.
Morrisons insisted that no decision has yet been made, but cautioned that the current proposals mean that the staff employed at the bakery are at risk of redundancy.
According to reports, nearly 400 people work at the site.
Meanwhile, sister title The Grocer has reported that rumoured interest in the site from Hovis failed to materialise after initial talks.
“Over the last few months we have conducted a thorough review of the options for the future of Rathbones,” a Morrisons spokesperson told Food Manufacture.
“This has led us to consider the possibility of closing the site. However, we are considering all alternative options, and want to work with our partner union BFAWU, together with employee representatives, on how we could change our current business model and safeguard as many jobs as possible.”
On the topic of potential redundancies, the spokesperson added: “We will do everything we can to help those colleagues affected, including investigating whether there are any other suitable roles elsewhere in the group.”
Loss making for several years
Rathbones, which operates out of a 28,000 square foot site in West Yorkshire, was acquired from administration by Morrisons in 2005 after which it enjoyed a “period of growth and investment”.
However, the retailer said that it has been loss making for a number of years, despite the execution of several projects aimed at returning the business to profitability.
While a decision on the eventual fate of Rathbones is made, Morrisons said that its instore Market Street branded bakeries with remain unaffected.
“[Our instore bakeries] will continue to serve customers freshly made bakery products every day,” the spokesperson added.