More than 550 jobs are at risk after the owner of Staffordshire's biggest biscuit factory revealed plans to shut the site.
2 Sisters Food Group has launched a consultation with staff at Elkes Biscuits - formerly Fox's Biscuits - in Uttoxeter over its decision to close the "significantly loss-making" factory.
Last year, 2 Sisters offloaded part of the Fox's Biscuits business - including its sites in West Yorkshire and Preston -to a Ferrero-related company in a £246 million deal.
But the Birmingham-based group held onto the Cheadle Road site in Uttoxeter, which is the town's biggest employer.
Now the company has revealed that it is considering closing the site, which produces own-label biscuits for major retailers - because it is "no longer commercially viable."
READ MORE: 100 jobs up for grabs at HGV trailer manufacturer Don-Bur
A consultation is due to be launched tomorrow (Sept 30) and will run until March 2022.
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.
Most Read
"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."
The spokesman added: "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."
Sign up for your free West Midlands newsletter and follow us on LinkedIn
Email newsletters
BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire.
Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates.
We will also send out 'Breaking News' emails for any stories which must be seen right away.
For all the latest stories, views and polls, follow our
Unite the union described the decision to sell the company as "an economic catastrophe" and is now calling for potential buyers to come forward to take over the Elkes Biscuits business.
Don’t miss
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."