16:51 20 November 2012
The maker of Hovis, Premier Foods, is to axe 900 jobs from its bakery division in a bid to tackle the current economic climate. The group Premier Foods, who are the UK’s biggest branded food producer, have plans to close bakery sites.
The firm is expected to shut two bread distribution centres in 2013, one being based in London with the other in Birmingham. This comes following news of their plans to close a bakery site in Hampshire.
In addition to this, the firm are believed to be looking at reducing their bread distribution routes by 130.
It is understood that the changes come as Premier Foods are looking to tackle their debt problems.
Based on reports, the company has recently lost a “low margin” contract to supply bread which was worth £75million.
Premier Foods’ Chief Executive, Michael Clarke, said: “By simplifying our cost base, we can increase focus on improving efficiency, quality and service levels to help grow our core Hovis business.
He added: “We recognise the impact these actions will have for our employees at the sites affected. Decisions will not be taken lightly but they are necessary if we are to build a strong and successful future for the bread division and those who remain with our business.”
Aside from Hovis, Premier Foods are also linked with other popular household names, such as Bisto and Braston’s, including Mr. Kipling’s cakes, as well as Sharwood’s and Robertson’s jams.
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