UK-based bakery products manufacturer Finsbury Food Group is planning to close its Grain D'Or bakery business, putting around 250 jobs at risk.
The company said that Grain D'Or has been historically loss making even after implementing several initiatives including strict cost controls and new working practices
Despite the repeated efforts, Grain D'Or generated £28.5m in revenue with an overall operating loss during the 12 months to 1 July 2017.
Finsbury Food Group claims that the company is performing well as per the trading statement summarised on 17 July 2017.
Regardless of the current pressures on the industry, the board believes it is well equipped to deliver growth and improved shareholder value in the upcoming phase.
Finsbury said that it is consulting with Grain D'Or's 250 employees on the closure of the unit.
Grain D’Or imports Normandy butter and Canadian blueberries. The bakery has been facing low income due to the fall in the value of Sterling since the June 2016 Brexit vote.
The pound value has fallen from €1.35 to €1.09 in the wake of the referendum thereby making key imported ingredients too expensive.
Grain D’Or was established in 1980 and operates two bakeries in London with a workforce of around 200.
The bakery company supplies a range of bakery products including pastries, American muffins and specialty breads to retailers and foodservice customers in the UK.
Recently, Finsbury has associated with Marry Berry and secured license to produce a range of Mary Berry cakes including round cakes, loaf cakes and celebration cakes.
These cakes will be available in supermarkets in the second half of the year.
