Finsbury Food Group to Close Grain D’Or Business

UK manufacturer of bakery products Finsbury Food Group is considering to close its Grain D’Or business, a provider of premium baked goods for the UK pastry sector, based in London.

The company will be go through a formal consultation period with circa 250 employees concerning the proposal.

Grain D’Or has been historically loss making, according to the Group’s press release. In recent years, the company has implemented a range of initiatives to improve the business, including strict cost controls and introducing new working practices. Despite this, during the 12 months to July 1, 2017, Grain D’Or generated GBP28.5m in revenue, but produced an overall operating loss.

Finsbury is a strong multi-channel business and a large diversified specialty bakery group.  As outlined in its recent trading update (issued in July 2017), the group is performing well. The annual sales of the group exceeded GBP300m in 2017.

In 2016, Finsbury Food Group has been rewarded with a prize for Celebration Cake Business of the Year 2016.

Grain D’Or was founded in 1980 and has two bakeries in London, producing croissants, pastries, American muffins and specialty breads to customers including retailers and food distributors.