Finsbury looking to shutter Grain D'Or business

Speciality bakery manufacturer of cake, bread and morning goods Finsbury Food Group is proposing to close its Grain D'Or business, it announced on Wednesday.

The AIM-traded company described Grain D'Or as a provider of “premium baked goods” for the UK pastry sector, based in London.

It said it would be entering into a formal consultation period with circa 250 employees concerning the proposal.

“The company has proposed the closure of Grain D'Or as the business has been historically loss making,” the Finsbury board said in its statement.

“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 1 July 2017, Grain D'Or generated £28.5m in revenue but produced an overall operating loss.”

Finsbury’s board described the company as a “strong multi-channel business” and a large diversified speciality bakery group.

As outlined in its recent trading update on 17 July, the group was performing “well”.

The board said it believes that - despite the current pressures on the industry - it is “well-equipped” to maintain its “market leading position” and continue to deliver growth and improved shareholder value over the period ahead.