Roberts Bakery is to radically restructure its factory in Cheshire after facing numerous challenges, with up to 250 staff facing redundancy.
A devastating fire at the Northwich bread plant in June 2023 wiped out almost two-thirds of the company’s production capacity, leading to a 21% drop in turnover to £76.1m in the year ended 31 August 2024.
Despite best efforts, bread volumes have not rebounded as expected. Many customers have secured alternative supply contracts during the recovery period, according to a statement from the business today.
Structural difficulties in the traditional sliced bread category also affected the group as demand for standard white bread reduced and increased competition and overcapacity in the market created downward pricing pressures.
In response, Roberts, which employs almost 700 staff, has conducted a comprehensive review of its product portfolio, operational footprint and long-term business strategy.
As part of this strategy, the company plans to restructure operational and support functions at the Northwich site, likely leading to job losses for 225 to 250 employees.
A formal consultation period of at least 45 days will begin shortly.
Employees at the company’s other sites in Ilkeston, where it makes artisan and specialised bread, and the biscuits factory in Winsford, will be unaffected by these changes.
The Companies House filing also showed MD Julia Banton and CFO Graham Melia were terminated as directors on 2 July and 1 May respectively. The Grocer is awaiting more details from the company on any leadership changes.
“We have faced unprecedented challenges in the last 24 months with longer term implications for our business than we anticipated,” said deputy chairman Mike Roberts, part of the fourth generation of the Roberts family.
“We do not take decisions to restructure lightly, we know its impact on our people, but at the same time we must ensure we are fit for purpose.
“We are absolutely committed to providing high-quality bread to customers across the region and maintaining the values that have defined our reputation for generations.
“We must continue to adapt to the turbulent market conditions, prioritising financial sustainability and operational efficiency to safeguard the future.”
Roberts, which can trace its history back to 1887, suffered a dramatic slump in sales in 2024 as shoppers shifted buying habits in the bread category, putting fewer standard loaves in trolleys in favour of speciality items such as crumpets, flatbreads and brioche. Category leader Warburtons has defied the wider slump to capture more of the market, but Roberts, along with rivals Hovis and Kingsmill, has suffered.
Value sales at the supermarkets for Roberts declined 28% [NIQ 52 w/e 7 September 2024], with some of the losses caused by the disruption from the fire, according to The Grocer’s latest Top Products Survey for 2024.
The slowdown continued into 2025, as revealed by the newest category report, with values down 28% again [NIQ 52 w/e 22 February 2025].
The latest Companies House accounts for the group showed a full and final insurance settlement for £19.9m was paid in December and helped push Roberts back into the black, with EBITDA of £24.3m.
A statement from the Roberts family said: “Today we are faced with serious challenges that mean, with sadness, we are today announcing a significant reorganisation of its operations. This difficult but essential step, which includes redundancies, is being taken to secure the future employment and long-term sustainability of the bakery to ensure it can continue to serve the community.
“Like many businesses, Roberts Bakery has faced severe challenges in recent years. We have navigated the global impact of Covid-19, the economic pressures from Russia’s war in Ukraine, and the ongoing cost of living crisis, which we know has impacted families everywhere. These factors have had a direct impact on our energy costs, ingredient prices, and the everyday budgets of our customers.
“Adding to these difficulties, in 2023 a major fire at our bakery in Rudheath completely shut down a large part of our operations for a prolonged period of time. Getting back on our feet after the fire has been incredibly tough, requiring a huge effort from our team, which we are incredibly grateful for, tremendous support from the community and the understanding of our customers. Despite our best efforts, the combined weight of these challenges has led us to make an incredibly difficult decision.”
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