UK: Hovis bakery in Leicester to close by January 2015

Premier Foods has announced its intention to close its Hovis plant in Leicester, UK as part as of a plan to “simplify” production.

At the beginning of the year Premium Foods sold 51% of Hovis to the Gores Group and the business is now run as a joint venture. The deal was established to allow Premium Foods to revitalize its bakery business atits remaining nine bakery plants.

A Hovis representative commented: “The proposal is part of the simplification and transformation of the company’s bread manufacturing operations which aims to improve efficiency, quality and customer service”.  A consultation period is now underway for the 204 staff currently employed at the plant.

The Leicester Mercury reports that there are 10 Hovis bakeries, six flour mills and two distribution centres in the UK employing around 3,800 staff. However it says that Hovis has suffered almost a 20% sales drop in sales in the past year, partly due to the loss of a major contract with the Co-operative Group.

Source: Leicester Mercury / Just Food