Addo said the proposed closure of the Lincolnshire site, planned for 2020, was required to ensure the company stayed profitable.
The company added it was keen to maintain its “market-leading position”, while meeting “customer expectations in an increasingly competitive marketplace”.
Addo’s brands include Pork Farms, Wall’s and Bowyers. It currently employs 2,500 people across six UK sites: Spalding, Tottle and Riverside Bakeries in Nottingham, Palethorpes Bakery in Shropshire, Poole Bakery and Dorset Food.
‘Fully understood the disappointment’
Addo chief executive Deborah Bolton said she “fully understood the disappointment” of the announcement for employees, but added that the company was “committed to doing everything possible to support them over the coming weeks, especially those who would be directly affected”.
Bolton said: “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.”
Addo said it was liaising directly with each of its customers to discuss the changes in more detail, and supply would not be affected.
Promoted to chief executive
Bolton was promoted to chief executive from chief operating officer in February, replacing Chris Peters.
At the time of her appointment, she said: “It will be a huge privilege to lead Addo Food Group, a business with great heritage across its brands and a bright future.
“Our focus will remain on being category leaders and serving our customers, suppliers, staff and stakeholders to continue to develop long-term growth.”