High street bakery brand Greggs has announced plans to shut four of its factories and cut 740 jobs. It plans to close manufacturing sites at North Lakes near Penrith, Cumbria, Pettigrews in Kelso, Scotland, Seaham in County Durham and Enfield, Greater London, though distribution operations would continue to run from the latter. The chain, which has headquarters in Newcastle, said its retail shops would not be affected by the proposed changes and like-for-like sales had grown across its managed stores. It said the plans would save it about £20m across the 2028 and 2029 financial years. The changes would take place over the next two and a half years, with parts of Greggs' manufacturing processes relocating, the firm said. The range of products manufactured at its Clydesmill Glasgow and Manchester locations would be reduced and production of tinned bread at Gosforth would be stopped. Some products would also be sourced from specialist suppliers. The firm employs 33,000 people in the UK, the majority working in its stores. The shake-up is expected to cost the firm about £60m, including disruption costs and redundancy payments. Greggs opened 95 new shops and closed 38 in the year to date, taking its overall estate to 2,796 shops.
BBQ - Why do you think Greggs have closed these factories?
