Greggs cuts 200 Bakers Oven jobs

Greggs recently voiced concerns about rising energy costs

The UK's largest bakery chain, Greggs, is to axe 200 jobs and close 14 of its Bakers Oven shops.

Greggs, which operates more than 1,300 bakeries, said the closures were as a result of poor sales in Northern England and Scotland.

It comes after the Newcastle-based firm announced that pre-tax profits had fallen £15.6m to £12.5m in the first half of 2006, amid rising energy costs.

The company runs 216 Bakers Oven stores in the UK.

Of those, 63 are in the North of England or Scotland. The remaining 49 will either be transferred to Greggs, or to the more successful Bakers Oven division in the Midlands.

Greggs managing director Sir Michael Darrington said: "Some 14 poorly performing shops will be closed and this, together with changes to supply arrangements, regrettably will result in the loss of around 200 jobs."

He said there was scope for more than 2,000 Greggs stores in the UK but added that this figure was unlikely to be met by 2010.

Healthier options

The 20% fall in profits came as energy costs rose to £2.4m in the 24 weeks to 17 June.

Greggs has now launched a healthier options range including low fat wraps, rolls and sandwiches as well as salads.

Sir Michael said: "Early indications are that all these products have been well received by our customers.

"I am confident that the group is well placed to compete and prosper in the future."

Greggs said the closures will cost it £2.5m, but should add £1.25m to its profits in 2007.