Rising inflation under Labour and factory blaze blamed as historic family firm baker chain reveals it’s on the brink of collapse

A devastating fire and hyperinflation under Labour’s watch brought the 138-year-old family-run bakery to the brink of collapse.

Roberts Bakery, based in Cheshire, says around 400 of its 700-strong workforce in Northwich are at risk of losing their jobs as it prepares to appoint administrators.

The firm said it faced an “extraordinarily difficult period” after a fire at its Northwich factory in 2023 reduced the amount of bread it could make by two-thirds for more than a year.

The bakery produces more than 2 million loaves of bread a week, but sales have fallen by £20 million in just one year, with a turnover of £76 million by 2024.

The company says despite its best efforts, the recovery is hampered by unprecedented inflation under the Labor government, when energy and material costs soared.

Inflation is still stuck at almost double the Bank of England target as Rachel Reeves faces more bad news ahead of the budget.

Official figures showed rising food costs helped keep headline CPI at 3.8 per cent year-on-year in August; The Conservative Party warned that ‘Britain cannot afford to hire workers’.

Food inflation exceeded 5 percent for the first time in 18 months, rising from 4.9 percent to 5.1 percent.

The company admitted it was facing an ‘extraordinarily difficult period’ following a fire at its Norwich factory in 2023, which caused the loss of two-thirds of its bread production capacity for over a year.

It also signaled unprecedented inflation, which soared to an 18-month high under Labor as rising energy and material costs hobbled the firm.

Much of the rise in inflation has been driven by the Chancellor’s £25bn crackdown on employers’ national insurance, as well as a huge increase in the minimum wage, which has made it more expensive to hire staff.

This has led many firms to pass on costs in the form of higher prices or, in other cases, to reduce their workforce.

The OECD issued a harsh warning regarding the background of Rachel Reeves, who is preparing for a very important budget.

The international body said price pressures in Britain this year will be worse than in other major economies and behind only the United States next year.

A spokesman for the bakery, which employs around 700 people, said: ‘Discussions with third parties are well underway and we are optimistic of a positive resolution that will keep the whole company afloat in the coming days.

‘We inform all our stakeholders, including our employees.

‘Daily operations are unaffected and the company continues to trade and fulfill orders as normal.

‘We are grateful for the continued trust and commitment shown by our customers and colleagues at this important stage for our business.’

Andrew Cooper MP said: ‘I know this will be an incredibly worrying and uncertain time for workers and their families.

‘As one of Northwich and Winsford’s largest employers, it is vital that all options are explored to maintain its 138-year history and secure as many jobs as possible.

‘I’ve been supporting Roberts Bakery behind the scenes for a few months now.

‘This notice of intent to appoint administrators has been made to give the management team and stakeholders time to achieve the best possible outcome, secure the business, protect the brands and put the business on a stronger, more stable footing.

‘A 24-hour effort is being made to save the business and I’ve seen first-hand the work that goes on behind the scenes to ensure the best outcome for everyone, so I’m helping.

‘I can’t give any further details at this stage, but it looks like there will be a positive outcome for the business and staff in the near future and please be assured that there are many people working tirelessly to make this happen.’