2 Sisters Food Group to close Pennine Foods factory in UK with 600 jobs at risk

UK The 2 Sisters Food Group has unveiled plans of closing its Pennine Foods ready meal factory in Sheffield, UK in a strategic move to cut down investments in loss making units.

The food manufacturer said that it has begun consulting on a possible closure of the site that has been operating at a heavy loss for some time adding that it is unlikely to be able to turn the business around, despite major investment in recent years.

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“Pennine Foods has undertaken a full strategic review of its business and has regrettably concluded its operation in Sheffield is not sustainable for the long-term,” a spokesman for 2 Sisters Food Group said in a statement.

“The site continues to be heavily loss-making, and despite major investment in recent years, we are unable to reverse the situation.

“Therefore we are now consulting with colleagues on our proposals, which include potential closure of the site. However, we are committed to exploring the full range of options available to us before any final decisions are made.

“We do not take this decision lightly and fully understand the impact if this proposal goes ahead. Our primary focus now will be to support our colleagues and their representatives during the consultation process to ensure we reach the best possible outcome for all parties.”

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Closure of the site is likely to result to over 600 job losses. The move is part its efforts to drive growth under a business turnaround strategy initiated by the newly elected Ronald Kers who set out ‘Framework for Success’ plan to drive the business back to profitability in August last year.

2 Sisters has disposed of Irish seafood business Donegal Catch, including the frozen food brand Green Isle Brands as well as the most recent sale of its Manton Wood sandwich business to Samworth Brothers to enable it focus on key operations.

The company is also considering reducing the number of its UK Poultry sites to simplify its business operations across the supply chain while delivering quality products and services.

However, the company has also announced a major investment across several facilities and intends to make further investments in its UK Poultry and Fox’s Biscuits businesses in an effort to drive efficiency and accelerate business transformation.

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