Northern Foods is in talks with employees over proposals to close two major factories with the loss of more than 1,000 jobs as part of a cost cutting drive.
The company, which has sold off a clutch of non-core businesses and rationalised its operating structure from 16 companies to four divisions, said production at Evesham and Carlisle would be transferred to modern, better-invested sites.
Combined with other cost-cutting measures, the plans are expected to save £10m a year said the company, which has recently axed 30 senior management positions as part of a restructure led by chief executive Pat O’Driscoll.
Under the proposals, sausage rolls and pie production at Evesham would be transferred to the Palethorpes site, and flans would move to Northern’s Riverside Bakery in Nottingham. Production from Carlisle will be carried out at another site in the city and at Riverside.
Underlying sales were up by 5.5% in the 11 weeks to September 18, with strong trade through Asda, Morrisons and Tesco. While input costs had increased by just over 2% driven by rising energy costs and the poor harvest, selling price increases were just below 2%, said the company.