Around 230 members of staff at beleaguered Glasgow bakery Mortons Rolls have been made redundant.
The Daily Record is reporting that talks are continuing today in a bid to rescue what remains of the business – and potentially bring workers back on board.
The news comes after the Record reported that staff were first issued with redundancy notices on Monday, backdated to March 7. FRP Advisory was appointed as provisional liquidator on March 7 after Glasgow Sheriff Court agreed to wind the firm up at the behest of HMRC over mounting tax debts.
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The Record understands that talks for what remains of the firm are at an advanced stage, with potential investors locked in discussions with the liquidators. It is believed that a number of shops and cafes that had been receiving goods from Mortons have been notified that their deliveries could resume as soon as this week – suggesting a buyer may have been found.
Mortons themselves have hinted at an imminent rescue. A notice uploaded to its website on Friday reads: "Nae rolls? Watch this space."
One business said they had been notified by their regular Mortons delivery driver to expect rolls again before the end of this week. The Record has approached Mortons for comment. FRP Advisory said it had no comment to make.
Paul Sweeney, Scottish Labour MSP for the Glasgow region, has urged the liquidators to engage with the workforce that has been laid off. He said: “The situation facing workers at Morton’s Rolls is incredibly difficult, and I know that the workforce and local community will be hurting.
"At the heart of this are workers and families who have been left in the dark with no contact from management. That is utterly intolerable, unacceptable and must be rectified.
"The liquidator in this case has a duty to engage with the workforce and to advise them on what recourse they have regarding redundancy, pay and pensions. I would also encourage any worker affected by this to contact PACE who will assist them with getting support.”
However, Mr Sweeney added that there is hope that at least some workers could get their jobs back if investment talks reach a positive conclusion. He continued: "I am hopeful that there will be an announcement in the coming days that reinstates much of the workforce in the short term.
"Longer term support will be needed and commitments have been made by the government to do everything possible to ensure Morton’s is able to be preserved. We will hold them to account for those comments as their support will be crucial to ensuring the long term viability of this business.”
Earlier we reported that staff had been told their contracts had been "terminated" in the redundancy notice that was sent round by email, which will be followed up with a letter in the post. The notice read: "I regret to advise you that the company is no longer in a position to make payments for services rendered by you under its contract of employment with you."
The Scottish Government, meanwhile, has organised two job fairs for those who have found themselves out of work as part of its PACE mass redundancy recovery scheme. The events will be held at Partick Job Centre on March 16 and 17.
A government spokesperson said on Monday: “We are aware that the provisional liquidator has written to employees today. We will continue to liaise with relevant stakeholders to seek a solution that will allow the business to continue to trade in some form.
"The workers affected by any business ceasing trading are the immediate priority. The Scottish Government’s initiative for responding to redundancy situations, Partnership Action for Continuing Employment (PACE), contacted the company and the liquidator to offer to provide support to affected employees.”
