Following a comprehensive business review, Addo Food Group has entered a consultation process over a proposal to close its Spalding bakery site in Lincolnshire during 2020 and transfer products to its Poole and Palethorpes bakeries.

The proposed closure, which would impact 405 employees, is required to ensure Addo Food Group is profitable, maintains its market leading position and meets customer expectations in an increasingly competitive marketplace.

Addo Food Group is liaising directly with each of its customers to discuss the changes in more detail. Supply would not be affected.

Deborah Bolton, CEO, said: “We fully understand the disappointment of this announcement for all of our employees, and we are committed to doing everything possible to support them over the coming weeks, especially those who would be directly affected.

“In order to maintain our market leading position and meet customer expectations as efficiently as possible, we need to optimise our manufacturing sites to enable a continued investment in quality, service and product and packaging innovation. This proposal will allow us to achieve this.”