Finsbury Food Group PLC (LON:FIF) is proposing to close its Grain D'Or business, a provider of premium baked goods for the UK pastry sector, based in London.
In a statement, the AIM-listed company - a leading UK speciality bakery manufacturer of cake, bread – said it will be entering into a formal consultation period with around 250 employees concerning the proposal.
READ: Finsbury Food reports flat first half revenue
The group pointed out that Grain D'Or has been historically loss-making and in recent years it has implemented a range of initiatives to improve the business including strict cost controls and introducing new working practices.
Despite this, Finsbury Food said, during the 12 months to 1 July 2017, Grain D'Or generated £28.5mln in revenue but produced an overall operating loss.
Finsbury Food also said that, as outlined in its trading update on 17 July 2017, it is performing well and the group believes that, despite the current pressures on the industry, it is “well equipped to maintain its market leading position and continue to deliver growth and improved shareholder value over the period ahead.”
In early trading, Finsbury Food shares were 2.2%, or 2.5p lower at 110.5p.