LONDON – 250 jobs are at risk as London bakery Grain D’Or, which made bread and croissants for Marks & Spencer and Tesco, faces closure.
Finsbury Food Group, which owns Grain D’Or, said that the business “has been historically loss-making,” in a statement on Wednesday announcing the planned closure.
“In recent years, the Company has implemented a range of initiatives to improve the business including strict cost controls and introducing new working practices,” Finsbury said.
Grain D’Or, which is based in Harlesden, North London, generated £28.5 million last year, Finsbury said, but still made a loss.
The bakery has been hit by the fall in the value of Sterling since the June 2016 Brexit vote. The pound has fallen from €1.35 to €1.09 in the wake of the referendum, making key imported ingredients more expensive.
Grain D’Or “is one of the major importers of Normandy butter – a key ingredient in the best croissants – and also one of the UK’s largest importers of Canadian blueberries,” according to the company’s website.
Finsbury says it is consulting with Grain D’Or’s 250 employees about the business’ planned closure.