Greggs has announced plans to close four manufacturing sites, including the Pettigrews factory in Kelso in the Scottish Borders, as part of an overhaul of its food manufacturing operations. The high street bakery chain said the proposed changes will take place over the next two-and-a-half years, with the loss of about 740 jobs in total.
Factory closures and production changes
The company plans to close its manufacturing sites at Pettigrews in Kelso in the Borders, Enfield in Greater London, North Lakes near Penrith in Cumbria, and Seaham in County Durham. Greggs also said it will reduce the range of products made at its Clydesmill location near Glasgow and in Manchester, and halt the manufacture of tinned bread at Gosforth.
Staff at the Pettigrews factory, which has had a presence in Kelso since 1968, declined to speak to journalists at the site on Wednesday.
Local reaction
Kelso and district councillor Euan Robson described the announcement as a “bit of a shock” and a “sad day” for workers. Speaking to the Press Association on Wednesday, he said: “Greggs is a very good business and apparently doing well, but it will be a sad day if the factory does close because it’s been here for a very long time.”
“It’s been a very valued business in the local community; it employs quite a number of people, and thoughts today are really with them because it’s an uncertain future.” Although he does not know exact figures, Mr Robson said the factory likely employs less than 100 people.
“It’s not a big factory compared to some units around here, but it does employ a considerable number of folk for a small town and community like we have in the rural Borders, so any job loss is to be regretted, and a factory closure such as this has an impact on the local economy,” he said.
“What we’ll be doing is talking to the local enterprise company, to Scottish ministers, and obviously to Greggs themselves to see if there’s anything that can be done, maybe to get them to change their mind, or to find alternative employment, or whatever it might be. But as I say, sympathy today is very much with the workforce.”
A spokeswoman for Scottish Borders Council said: “SBC has employability services available for anyone requiring support, these can be accessed through our website.”
Financial impact and consultation
Greggs has said the shake-up will cost the firm around £60 million, including disruption costs and redundancy payments. But it said the plans will save it around £20 million across the 2028 and 2029 financial years.
The firm said it will shortly start a consultation process with affected workers and their union representatives, and it stressed “no final decisions have been made”. Greggs employs around 33,000 people across the UK, with the vast majority of these in stores.
Sarah Woolley, general secretary of the Bakers, Food and Allied Workers Union (BFAWU), said: “The BFAWU is deeply concerned by today’s announcement from Greggs, which places hundreds of workers and their livelihoods at risk as part of proposed changes to the company’s manufacturing network. Our immediate priority is our members, their jobs, their families and the communities that could be affected by these proposals. Greggs is clear in its own announcement that the business continues to perform strongly, that more customers are choosing Greggs than ever before, and that it is investing significantly to support further growth.”
