Finsbury Food Group to Close Grain D’Or Business
Finsbury Food Group, a leading UK speciality bakery manufacturer of cake, bread and morning goods for both the retail and foodservice channels, is proposing to close its Grain D’Or business. Based in London, Grain D’Or is a provider of premium baked goods for the UK pastry sector. Finsbury Food Group will be entering into a formal consultation period with about 250 employees concerning the proposal.
Finsbury Food Group has proposed the closure of Grain D’Or as the business has been historically loss making. In recent years, the company has implemented a range of initiatives to improve the business including strict cost controls and introducing new working practices. Despite this, during the 12 months to 1 July 2017, Grain D’Or generated £28.5 million in revenue but produced an overall operating loss.
As outlined in its recent trading update, on 17 July 2017, Finsbury Food Group is performing well. The board believes that despite the current pressures on the industry, it is well equipped to maintain its market leading position and continue to deliver growth and improved shareholder value over the period ahead. The group has annualised sales in 2017 exceeding £300 million.
