MORTONS Rolls has issued redundancy notices to staff, reports STV News.
The Drumchapel bakery ceased trading on March 3, putting 250 jobs at risk.
It’s understood that redundancy notices have now been issued, but the number of employees affected is not yet known.
It comes after a provisional liquidator was appointed on Friday.
A new email sent to employees 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.
“You should therefore regard your service as terminated, as from March 7, 2023. A formal letter has been issued to your home address containing further details.
“The Provisional Liquidator is working alongside Skills Development Scotland and the Partnership Action for Continuing Employment (PACE).
“This is the Scottish Government’s initiative dedicated to helping individuals with the advice and support they need when faced with redundancy. Further information is contained with the letter.”
Last week Nicola Sturgeon said the Scottish Government will do all it can to ensure the bakery continues to trade.
Paul Sweeney, Glasgow Labour MSP, asked the First Minister in Holyrood to intervene and ensure jobs were saved at the bakery.
He revealed that: “Investors have come forward.”
But he added the Government needs to assist.
Sturgeon said: “I will give a commitment to doing everything possible to preserving Mortons Rolls and the jobs that depend on it.
“I know how important a company like this is to Drumchapel.
“We will do everything we possibly can to see if there is a rescue package to allow it to continue trading.”
The iconic bakery could be saved from closure after a future deal with investors was teased on the firm’s website, but a number of job losses are expected.
A Scottish Government spokesperson told STV News: “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.
“PACE support is already available online and through the PACE Helpline. Two PACE Support and Jobs Fair events will be held at Partick Job Centre on Thursday, March 16, and Friday, March 17.”
