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Greggs to close three UK bakeries, including Edinburgh | Greggs to close three UK bakeries, including Edinburgh |
(about 1 hour later) | |
High Street chain Greggs is to close three of its 12 bakeries in the UK, including one in Scotland. | |
The closures in Edinburgh, Twickenham in London and Sleaford in Lincolnshire are likely to lead to the loss of 355 jobs. | The closures in Edinburgh, Twickenham in London and Sleaford in Lincolnshire are likely to lead to the loss of 355 jobs. |
Greggs is in the process of switching its focus from being a traditional baker to selling more food on the go. | |
It confirmed it was investing in its Clydesmill bakery in Glasgow to create a "centre of excellence" in Scotland. | |
The reorganisation of Greggs was announced as the company reported a 25% increase in underlying annual profits to £73m for 2015. | |
In 2013, Greggs announced a plan to focus on the £6bn food-on-the-go market. | |
The Newcastle-based company has concentrated on selling sandwiches, sausage rolls and pastries, but it said customers were now buying healthier foods such as salads and soups. | |
Greggs has about 1,700 shops and said it was confident it could increase the number to 2,000. | |
As part of a £100m investment over five years, the company said it planned to upgrade its Enfield bakery in London as well as the the bakery in Glasgow. | |
'Difficult changes' | 'Difficult changes' |
A spokesman said: "Greggs currently operates from 12 bakeries; unfortunately not all are suitable for long-term investment due to their location and size. | A spokesman said: "Greggs currently operates from 12 bakeries; unfortunately not all are suitable for long-term investment due to their location and size. |
"These are difficult changes that we believe are needed to support the long-term growth of the business; however our immediate priority is to work to minimise the negative impact on our people, many of whom have worked in these roles for a significant number of years. | "These are difficult changes that we believe are needed to support the long-term growth of the business; however our immediate priority is to work to minimise the negative impact on our people, many of whom have worked in these roles for a significant number of years. |
"Wherever possible we would look to offer alternative employment to affected employees but, due to the location of our sites, we anticipate that unfortunately many will leave the business." | "Wherever possible we would look to offer alternative employment to affected employees but, due to the location of our sites, we anticipate that unfortunately many will leave the business." |
He added: "Our recently-acquired distribution facility in London will enable us to invest in our Enfield bakery to create a manufacturing centre of excellence in the south east region and we now propose to invest in the extension of our Clydesmill bakery in Glasgow to create a centre of excellence in Scotland." | |
Last year, Scottish ministers including Kezia Dugdale and Nicola Sturgeon backed a Scotland-wide campaign for Greggs to "save the macaroni pie" after the savoury treats were axed. | Last year, Scottish ministers including Kezia Dugdale and Nicola Sturgeon backed a Scotland-wide campaign for Greggs to "save the macaroni pie" after the savoury treats were axed. |