A spokesperson for Avana Bakeries in Newport has confirmed the majority of its 650-strong workforce is at risk of redundancy following the loss of its M&S contract to a competitor.
The spokesperson added there is also a risk the site could be closed.
Clearly this is a huge setback to our cakes business and our operations in Wales, but we are determined to work hard to reverse the situation.
As a matter of urgency, we are now making every effort to rebuild the business by seeking alternative customers and strategies which will minimise the impact of this contract loss.
Our immediate priority now is to have meaningful discussions with our colleagues during a minimum 45-day consultation period to explore all available options before taking the next steps. We are hopeful that we can retain our cakes business in Newport.
Oldham-based Park Cake Bakeries says it is pleased its partnership with M&S will continue.
A spokesperson for the business said: “Park Cake Bakeries has had a long and fruitful relationship as a supplier of quality cakes and desserts to Marks and Spencer and we are pleased that partnership will continue with the award of M&S’s cakes and desserts business, primarily to our site in Oldham.”
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