Burton's Foods (UK) to cut 660 jobs, two months after Duke Street Capital buyout
Burton’s Foods, the UK's second largest biscuit manufacturer, announced it will slash up to 660 jobs just two months after the company was acquired by the private equity fund Duke Street Capital.
The job cuts come as Burton's is further squeezed in a second round of "unlocking value" by private equity funds. Duke Street Capital bought Burton's for £200 million in March from another private equity fund, HM Capital.
Continue reading:
“Cookie crumbles at Burton's Foods site”, Channel 4, 11 May 2007.
“Chocolate biscuit jobs melt away", Telegraph.co.uk, 12 May 2007.
“660 jobs to go at one of Burton's Foods plants”, EARTHtimes.org, 11 May 2007.
LONDON: The second largest biscuit supplier in Britain, Burton's Foods, will shed nearly 660 jobs as it decided to cease operations of part of its production plant at Moreton, Wirral following a business review.
The company, which makes biscuits and cookies for major firms, including Cadbury's, said in a statement it needs to be proactive in anticipating future market, customer, consumer and cost challenges and a streamlined and more flexible manufacturing capability is essential to allow the business to capitalize on growth opportunities.
Some 300 jobs will remain at the plant as it will continue with certain products.
The company, owned by a private equity fund, Duke Street Capital, will continue its operations at other plants, notably Moreton, Blackpool, Edinburgh and Llantamam, South Wales.
The company's chief executive Paul Kitchener said while the company has a successful business, it operates in a highly competitive environment and overcapacity in the country's biscuit market.
Kitchener said the move is aimed at securing the long-term success of the company and its remaining 2,400 workers in other locations.
Some of Burton's Foods' brands are Wagon Wheels, Jammie Dodgers and Maryland Cookies. It also makes chocolate biscuits for Cadbury's. Copyright © 2007 Respective Author