Food company could cut 730 jobs

More than 700 workers at a Lincolnshire food factory could lose their jobs after managers announced plans to stop production at the site.

Northern Foods said its Fenland Foods plant in Grantham would be "mothballed" from August.

The decision came after Marks & Spencer withdrew production of its Italian ready meal range from the factory.

Northern Foods said it would carry out a 90-day consultation process and support the 730 workers affected.

'Credit crunch'

Andy Worth, regional officer of the GMB union, said: "This is tragic news for the workers and their families, especially as there is very little alternative employment in the area.

"We will do all we can to mitigate the impact of this announcement.

"The credit crunch is now beginning to hit home. Who would have expected it would be food manufacturing firms hit as families trim back on their weekly budget?"

Stefan Barden, chief executive of Northern Foods, said: "Our immediate task is to support our loyal employees through the consultation period."

'Unrealistic'

Mr Barden said the factory, which was built for Marks & Spencer in 1987, could remain mothballed for as long as three years while other opportunities were examined.

"It's a little bit tired. We would want to refurbish it if we were to do something else. Those are the discussions we want to start with other customers.

"Those discussions could take two to three years. It's just unrealistic to keep the workforce on during that time period."

Colin Gunter, who has worked at the site for 19 years, said he was shocked by the news.

"A lot of people like myself have put in a lot of years so this has come totally out of the blue.

"In this town, those 700 employees, for a lot of people they may never get a job again," he said.

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