Premier Foods factory in Staffordshire to close threatening 300 jobs

Premier Foods, the owner of Mr Kipling cakes, is to close a factory in Staffordshire putting 300 jobs at risk.

Consultation with staff has started and it is thought the manufacturing site in Knighton will operate until 2024 before shutting after a phased closure.

Premier Foods said the factory, which largely makes unbranded powdered drinks, was "marginally" loss-making.

The closure could cost about £10m but will improve profits in the long run, the company said.

The group, which also owns brands such as Bisto, Ambrosia, Oxo and Loyd Grossman sauces, has 15 factories across the UK and employs 4,000 people.

It reported a 12% rise in sales over its third quarter to the end of December.

Last year, hundreds of staff at several locations around the country were offered the chance to work from home as the company introduced hybrid working.

Confirming the closure at Knighton, a spokesperson said the factory "does not fit in with its branded growth model strategy".

"It is recognised that this will be an unsettling time for those circa 300 colleagues who are potentially affected by these proposals and they will be fully supported and consulted with throughout the process," Premier Foods said.

As food costs continue to rise, the group said it was offsetting soaring costs with annual price rises and cost savings.

Chief executive Alex Whitehouse said strong trading momentum and more investment and product launches meant the group was "well on track to deliver on expectations for the full year".

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