Mortons Rolls has announced it will resume production this Sunday after being plucked from administration by a group of angel investors.
The Glasgow-based bakery, renowned for its morning rolls and "We built this city" slogan, is asking 110 workers to immediately come back to work at its base in Drumchapel. A total of 230 people lost their jobs when the company folded on March 7, prompting a scramble to find new investment.
The company says that it had struggled with financial difficulties, the Covid pandemic, the rise in energy prices and "contractual obligations to large supermarkets". Investment consortium PVL has announced it has taken the reins at the company, and says it is "confident" it can reverse the company's ailing fortunes.
PVL representative John McIlvogue said on Friday: "This is a bittersweet moment for me, for the people who work here and for the wider community that relies on the jobs this factory provides. None of us wanted the past couple of weeks to unfold in the way that they have, but it has been entirely outwith our control.
"The important thing now is that Mortons is back in action, we’ve got the workforce back on the production line, and we’re ready to start producing our famous rolls that the good people of Glasgow have been crying out for. Glasgow doesn’t need to worry about having nae rolls anymore; Mortons is back.”
Mortons is by no means out of the woods: Mr McIlvogue has stressed that the factory in Drumchapel is "antiquated". PVL hopes the Scottish Government will agree a support package for the firm to ensure it can produce rolls for "generations to come".
He added: "In an ideal world these things would have all been sorted out before we restarted production, but the reality is we couldn’t leave the workforce in limbo. They needed us to unlock the gates and let them get back to work, and we knew that was the right and proper thing to do."
Established in 1965, Morton’s Rolls became a much-loved breakfast staple across Glasgow and the West of Scotland. The company later expanded into producing sweet treats and cakes, but it is understood that the immediate focus for the phoenix firm is on producing breakfast rolls, of which it produced two million every week.
Glasgow region Labour MSP Paul Sweeney, who has been credited as being "instrumental" in securing Mortons' future, said: "These circumstances are by no means perfect, and there is still work to be done to make sure Mortons is a sustainable business that can thrive for generations to come. There is a commitment from the government to make sure they do everything in their power to make sure that is the case, and I will do everything in my power to hold them to that commitment.
“The community of Drumchapel needs Morton’s to thrive and I’m confident that with the right support to invest in modernising operations and with a renewed focus on their core bakery products, this business will outlive all of us. It has been a painstaking couple of weeks for everyone involved, but we got there in the end and I’m absolutely delighted that the people of Glasgow will be able to enjoy their favourite morning rolls once more.”
While Mortons has pledged to recruit more staff in the near future if its stability can be assured, 120 workers will not be returning to their jobs. A class action lawsuit is being prepared to claim an eight-week protective award, coordinated by legal firm Thompsons.
A Scottish Government spokesman said: “The Scottish Government is aware of reports that Morton’s Rolls is to recommence production next week and welcomes the fact that a proportion of staff affected by the company ceasing to trade earlier this month are likely to be re-employed.
“Business Minister Ivan McKee and Scottish Enterprise have both spoken with the investor and have asked for detailed information on proposals for the future of the Morton’s Rolls site. We await those details.
“Those employees who are still affected by the closure of Morton’s Rolls remain our immediate priority. The Scottish Government’s initiative for responding to redundancy situations, Partnership Action for Continuing Employment (PACE), will continue to offer support to affected employees.
“PACE support is already available online and through the PACE Helpline. PACE Support and Jobs Fair events have been held at Partick Job Centre.”
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