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| Around 650 Avana Bakeries jobs at risk after M&S contract loss | Around 650 Avana Bakeries jobs at risk after M&S contract loss |
| (35 minutes later) | |
| Around 650 jobs at a bakery chain in Newport are under threat after the company lost a multi-million pound cake contract to a firm in Oldham. | Around 650 jobs at a bakery chain in Newport are under threat after the company lost a multi-million pound cake contract to a firm in Oldham. |
| Marks and Spencer has pulled the plug on its deal with Avana Bakeries, in Rogerstone, leaving jobs and the site under threat. | Marks and Spencer has pulled the plug on its deal with Avana Bakeries, in Rogerstone, leaving jobs and the site under threat. |
| The M&S deal makes up 85% of what the Avana bakery produces. | The M&S deal makes up 85% of what the Avana bakery produces. |
| A spokesman for owners 2 Sisters Food Group called the decision a "huge setback". | A spokesman for owners 2 Sisters Food Group called the decision a "huge setback". |
| "It is with much regret that we can confirm following a strategic review with our customer M&S, the majority of employees at our Avana bakery site in Newport are now at risk of redundancy following the loss of our M&S business to a competitor," he said. | "It is with much regret that we can confirm following a strategic review with our customer M&S, the majority of employees at our Avana bakery site in Newport are now at risk of redundancy following the loss of our M&S business to a competitor," he said. |
| "The work will now be transferred to the other company, therefore placing the majority of our 650-strong workforce at risk of redundancy. There is also a risk that the site could be closed. | "The work will now be transferred to the other company, therefore placing the majority of our 650-strong workforce at risk of redundancy. There is also a risk that the site could be closed. |
| "Clearly this is a huge setback to our cakes business and our operations in Wales, but we are determined to work hard to reverse the situation." | "Clearly this is a huge setback to our cakes business and our operations in Wales, but we are determined to work hard to reverse the situation." |
| He said they would be attempting to rebuild the business and looking for alternative customers as a matter of urgency. | He said they would be attempting to rebuild the business and looking for alternative customers as a matter of urgency. |
| "Our immediate priority now is to have meaningful discussions with our colleagues during a 45-day consultation period to explore all available options before taking the next steps. We remain hopeful we can retain our business in Newport," he added. | "Our immediate priority now is to have meaningful discussions with our colleagues during a 45-day consultation period to explore all available options before taking the next steps. We remain hopeful we can retain our business in Newport," he added. |
| The M&S contract is being transferred to Park Cakes in Oldham, Greater Manchester. | The M&S contract is being transferred to Park Cakes in Oldham, Greater Manchester. |
| Worker Jamie Evans, 35, from Cwmbran, who has worked at the Rogerstone site for 12 years, was on Thursday's night shift. | |
| He said: "I am shocked at the news and cant believe it as we all thought that it was going to be busier this year. | |
| "Hopefully there will be light at the end of the tunnel, with four kids and bills to pay it could be quite hard. | |
| "This was always a possibility if M&S pulled out and now it's reality." | |
| 'Loyal hardworking people' | 'Loyal hardworking people' |
| A spokesperson for M&S said: "As part of our work to further improve the quality of our food supply chain, we are consolidating some of our fresh desserts and cakes business and moving from two suppliers to one. | A spokesperson for M&S said: "As part of our work to further improve the quality of our food supply chain, we are consolidating some of our fresh desserts and cakes business and moving from two suppliers to one. |
| "It's not a decision we've taken lightly and understand that it will have a significant impact for Avana Bakeries. We'll do all we can to support the supplier through the process." | "It's not a decision we've taken lightly and understand that it will have a significant impact for Avana Bakeries. We'll do all we can to support the supplier through the process." |
| Following the announcement, Newport West AM and Presiding Officer Dame Rosemary Butler said: "This is devastating news both for the worker and for Newport. | Following the announcement, Newport West AM and Presiding Officer Dame Rosemary Butler said: "This is devastating news both for the worker and for Newport. |
| "This is a loyal hardworking group of people and the fact that 650 jobs is being talked about is appalling. | "This is a loyal hardworking group of people and the fact that 650 jobs is being talked about is appalling. |
| "I understand 75% of their work will go." | "I understand 75% of their work will go." |
| Dame Rosemary said she planned to visit the site later on Friday. | Dame Rosemary said she planned to visit the site later on Friday. |
| "It's all so sudden and unexpected," she added. | "It's all so sudden and unexpected," she added. |
| 'Bolt from the blue' | 'Bolt from the blue' |
| Newport West MP Paul Flynn tweeted: "Very serious jobs blow at Avana Newport with loss of M&S contract. Not all jobs affected and there is some hope to rebuild. Good luck." | Newport West MP Paul Flynn tweeted: "Very serious jobs blow at Avana Newport with loss of M&S contract. Not all jobs affected and there is some hope to rebuild. Good luck." |
| Rogerstone councillor Chris Evans said staff were told on Friday morning and the news came "like a bolt from the blue". | Rogerstone councillor Chris Evans said staff were told on Friday morning and the news came "like a bolt from the blue". |
| "It's a devastating blow," he said. | "It's a devastating blow," he said. |
| "They're a good employer, great relationship with their staff and they were even taking on more staff over Christmas. | |
| "There's been no rumours or anything on the grapevine as often happens in these cases." | "There's been no rumours or anything on the grapevine as often happens in these cases." |
| Welsh Conservative shadow minister for business Nick Ramsay AM said: "This is a huge blow for the company and its employees and an extremely significant jobs loss threat for south Wales. | Welsh Conservative shadow minister for business Nick Ramsay AM said: "This is a huge blow for the company and its employees and an extremely significant jobs loss threat for south Wales. |
| "Avana is a substantial employer and a regional stalwart." | "Avana is a substantial employer and a regional stalwart." |
| Plaid Cymru's South Wales AM Jocelyn Davies said: "It's extremely worrying 650 workers are facing redundancy at the Avana Bakery. This is a devastating blow and my thoughts go out to those workers who are left uncertain about the security of their jobs." | |
| Avana specialises in novelty and Christmas cakes and 40 skilled workers are employed to hand decorate cakes. | Avana specialises in novelty and Christmas cakes and 40 skilled workers are employed to hand decorate cakes. |
| In December 2001, Avana was under threat after its factory was severely damaged by a fire and it closed for a week. | In December 2001, Avana was under threat after its factory was severely damaged by a fire and it closed for a week. |
| Staff spent 24 hours a day cleaning up after the blaze, which hit the office block and destroyed delivery lorries, and transferring work to areas which had not been damaged. | Staff spent 24 hours a day cleaning up after the blaze, which hit the office block and destroyed delivery lorries, and transferring work to areas which had not been damaged. |
| Hundreds of contracts were at risk, but a deal with M&S seven months later secured them. | Hundreds of contracts were at risk, but a deal with M&S seven months later secured them. |
| As a result, Avana expanded production at Rogerstone and took on up to 170 extra staff for the new contract. | As a result, Avana expanded production at Rogerstone and took on up to 170 extra staff for the new contract. |