A review of the ready-meal factory has begun, consulting on a possible closure of the facility, with around 600 jobs at risk.
The site has been operating at a heavy loss for some time and the company confirmed that it was unlikely to be able to turn the business around, despite major investment in recent years.
“Pennine Foods has undertaken a full strategic review of its business and has regrettably concluded its operation in Sheffield is not sustainable for the long-term,” a spokesperson told Food Manufacture.
Potential closure of the site
“Therefore, we are now consulting with colleagues on our proposals, which include 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.”
Best possible outcomes
This becomes the third announcement of this kind in as many weeks after it was revealed that a factory in Leicester that manufactures Fox's Glacier Mints would be closed by the end of the year, with multiple job losses coming as part of the proposals.
The previous week, Food Manufacture also confirmed the closure of the Café Class sandwich business in Middlesbrough, which had cited competition issues.
This followed an alert posted by the Food Standards Agency concerning Café Class products that were not compliant with food law requirements.