550 jobs at risk as 2 Sisters mulls closing biscuit factory

Unite the union has called for potential buyers to step forward to buy Elkes Biscuits in Uttoxeter, Staffordshire, following the decision by its owner 2 Sisters Food Group to sell the company.

Unite said that Elkes Biscuits, with 550 employees is Uttoxeter’s biggest employer, made a “fantastic” range of popular Victorian-style biscuits and its possible loss would be “an economic catastrophe” for the town, and the workers and their families.

A consultation opens on Thursday (30 September) and runs to March 2022, which Unite said provides “ample opportunity” for potential buyers to step forward to take over the Cheadle Road site, formerly known as Fox’s Biscuits.

A spokesman for Elkes Biscuits said: “Following a wide-ranging strategic review, the Fox’s Biscuits business including the sites at Batley and Kirkham was sold in November 2020.

“Since that time, we have been reviewing all options for the Elkes business at Uttoxeter including turnaround opportunities and potential sale.

“The Uttoxeter site is significantly loss making and we have been unable to reverse this situation in the face of strong competitive pressure and cost inflation, nor have we been able to secure a viable offer for the business.  We now believe the site is no longer commercially viable.

“Regrettably, we are now consulting with colleagues on our proposals, which includes the 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.”

Unite regional officer Rick Coyle said: “The possible closure of Elkes Biscuits would be a catastrophe for the employees, their families and the wider regional economy. It is Uttoxeter’s biggest employer so the knock-on impact on the shops and hospitality outlets that rely on the spending power of the workforce would be substantial.

“However, we know that Elkes Biscuits has a wide range of biscuits that are very popular with consumers, and this is underpinned by a dedicated and hardworking workforce. All these factors make it an attractive proposition to another company wishing to buy the site.

“Unite wishes to work constructively with the management of the 2 Sisters Food Group during the consultation period until March to find a buyer. We would like to examine in detail the business case that is being put forward for the sale.

“We will also be giving our members maximum support during this anxious time.”

2 Sisters has been approached for comment.