A devastating fire and rampant inflation under Labour’s watch have left a 138-year-old family-run bakery on the brink of collapse.
Roberts Bakery, based in Cheshire, has warned around 400 of its 700-strong workforce in Northwich face losing their jobs, as it prepares to appoint administrators.
The firm says it faced an ‘exceptionally difficult period’ after a blaze at its Northwich factory in 2023 lowered the amount of bread it could make by two-thirds for more than a year.
The bakery makes more than 2million loaves of bread per week, but sales have fallen by £20million in just a year, leaving it with a turnover of £76million in 2024.Â
And despite its best efforts, the company says unprecedented inflation under the Labour government – which has seen energy and ingredient costs soar – has hampered its recovery.
Inflation is still stuck at almost double the Bank of England‘s target as Rachel Reeves faces more bad news ahead of the Budget next month.
Official figures showed surging food costs helped keep the headline CPI at 3.8 per cent annually in August, as the Tories warned ‘Britain can’t afford Labour’.
Food inflation nudged above five per cent for the first time in 18 months, going from 4.9 per cent to 5.1 per cent.Â
Roberts Bakery, based in Cheshire, is battling to save 250 jobs at risk as it prepares to appoint administratorsÂ
The firm admitted to facing ‘an exceptionally difficult period’ after a 2023 blaze at its Norwich factory that caused the loss of two thirds of bread production capacity for over a year
It also pointed the finger at unprecedented inflation under Labour which has hit an 18-month high as rising energy and ingredient costs has crippled the firm
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Much of the surge in inflation has been caused by the Chancellor’s £25billion raid on employer national insurance as well as a big increase in the minimum wage, which has made it more expensive to hire staff.
That has resulted in many firms passing on the costs in the form of higher prices – or in other cases cutting back the workforce.
The OECD has given a stark warning about the backdrop for Rachel Reeves as she prepares for a crucial Budget.
The international body said price pressures would be worse in Britain this year than any other major economy – and only behind the US next year.
A spokesperson for the bakery, which employs around 700 people, said: ‘Discussions are well advanced with third parties, and we are optimistic about a positive solution in the coming days that will preserve the whole company as a going concern.Â
‘We are keeping all stakeholders informed including our employees.
‘Day-to-day operations are unaffected, and the company is continuing to trade and fulfil orders as normal.Â
‘We are grateful for the continued confidence and commitment shown by our customers and colleagues during this pivotal phase for the business.’
MP Andrew Cooper said: ‘I know this will be an incredibly worrying and uncertain time for its employees and their families.
‘As one of Northwich and Winsford’s biggest employers, it is vital that all options are explored with a view to continuing its 138-year history and securing as many jobs as possible.
‘I’ve been supporting Roberts Bakery behind the scenes for several months.
‘This notice of intention to appoint administrators has been made to allow the management team and stakeholders time to secure the best possible outcome, to safeguard jobs, preserve the brands and put the business on a stronger, more stable footing.
‘Efforts are being made around the clock to save the business, and I have seen first-hand the work being undertaken in the background to get the best outcome for everyone, something I am also assisting with.
‘I cannot provide any further details at this stage, but it is looking like there will be a positive outcome for the business and staff in the near future, and please be assured there are many people working tirelessly to make this happen.’
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Rising inflation under Labour and factory blaze blamed as historic family firm baker chain reveals it’s on the brink of collapse