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Daily Mirror
Daily Mirror
Business
Ruby Flanagan

Mr Kipling owner Premier Foods to close UK factory putting 300 jobs at risk

The company behind the Mr Kipling brand, Premier Foods, will be closing one of its UK manufacturing sites - putting 300 jobs at risk.

The food giant is proposing to close its Knighton manufacturing site in Staffordshire, which it said was "marginally" loss-making.

A consultation has been launched and will run until the middle of this year.

The site in question, which largely makes unbranded powdered drinks for the group, is likely to continue operating into 2024 before finally shutting after a "phased closure".

However, the group has not confirmed its plans for the closure of the site.

Announced in its most recent trading update, Premier Foods said the Knighton factory does not fit in with its "branded growth model strategy and is marginally unprofitable at a trading profit".

The factory set to close largely makes unbranded powdered drinks for the group (Stoke Sentinel)

The group, which also makes sweet favourites such as Angel Delight and Bird's Custard, said: "It is recognised that this will be an unsettling time for those circa 300 colleagues who are potentially affected by these proposals and they will be fully supported and consulted with throughout the process."

The move is set to cost it around £10 million in one-off closure costs, but Premier Food’s said the closure of the site will boost trading profits in the long run.

Despite the announcement of the plan, Premiere Foods reported a 12% growth in group sales over the December period with its grocery sales up 17% and its branded item sales up 15%.

It said pricing provided a "significant" boost to revenue growth in the quarter, though it added that "demand was particularly buoyant running into the key festive period".

Premier Foods is not the only big brand to announce potential job losses in the recent few weeks as more businesses continue to struggle.

Last week, the online retail giant Amazon announced that it was to shut three of its UK warehouses which was to put over 1,000 jobs at risk.

Another tech giant, Microsoft also recently announced around plans for 10,000 layoffs, which is just under 5% of its total workforce and would affect staff worldwide.

The casual dining burger chain Byron Burger also recently announced plans to close nine of its restaurants after falling into administration.

In its announcement of the closures, Byron said the move was to affect around 218 jobs.

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