The owner of Hovis bread has announced plans to cut up to 900 jobs across the UK as it strived to rejuvenate its struggling bread business.
Premier Foods, who own the company, have announced the changes for their bread business after increasing competition and price changes to wheat have affected sales figures.
Premier, who also make Mr Kipling cakes and Bisto gravy, have lost a multimillion pound contract for next year with a major grocery store chain – which is said to have also impacted the restructure decision.
The move will see 130 distribution routes cut, two bakeries closed and changes to the company’s delivery network.
As a result over 500 jobs are due to be lost in Birmingham where a factory and distribution centre is set to close. Almost 200 jobs in London will also be cut and Plymouth and Suffolk will also see job losses. The closures are yet to be confirmed but once existing staff have been consulted it’s thought the changes will be made throughout 2013.
Premier has also been selling off other parts of its business in a bid to reduce debts. They recently sold their jam business Hartley’s to an American company.