Biscuit factory at risk of closure
THE SITE IS ‘SIGNIFICANTLY LOSS-MAKING’, SAY BOSSES
ELKES Biscuits factory in Uttoxeter is at risk of closure with the loss of 500 jobs which would bring more than 100 years of history in the town to an end.
Staff said they have been left shocked by the news, but one claimed they “knew that the factory wouldn’t last very long” as it has run at a loss for a long time.
Bosses have said they are looking at a “full range of options” for the site, including its potential closure.
A spokesman for the firm said: “The Uttoxeter site is significantly loss-making and we have been unable to reverse this situation in the face of strong competitive pressure and cost inflation, nor have we been able to secure a viable offer for the business.
“We now believe the site is no longer commercially viable.”
It is understood staff were told about the situation at a meeting at the factory yesterday and that consultations will begin in a few weeks’ time.
Elkes is known for creating the famous Malted Milk biscuit, with its iconic cow logo, and has been based in Uttoxeter since 1908.
It later became Fox’s Biscuits but reverted back to its original name last year when
Fox’s was sold and Elkes became a standalone firm.
One staff member, who did not wish to be named, said: “The staff were shocked but sort of knew the factory wouldn’t last very long as only a quarter capacity of lines were running in the factory for the past year or so, but we were being told by management that they’re getting new orders/business but that never happened.”
A spokesman for Elkes Biscuits, who confirmed that 528 people work at the factory, said: “Following a wide-ranging strategic review, the Fox’s Biscuits business including the sites at Batley and Kirkham was sold in November 2020.
“Since that time, we have been reviewing all options for the Elkes business at Uttoxeter, including turnaround opportunities and potential sale.”
He added: “Regrettably, we are now consulting with colleagues on our proposals, which includes the potential closure of the site. However, we are committed to exploring the full range of options available to us before any final decisions are made.
“We do not take this decision lightly and fully understand the impact if this proposal goes ahead.
“Our primary focus now will be to support our colleagues and their representatives during the consultation process to ensure we reach the best possible outcome for all parties.”
The firm is based in Cheadle Road in the town.
Elkes began as a small family business run by Charles Henry Elkes, Baker and Confectioner, in a shop in Carter Street around 1908 and later in High Street. This was so successful that in 1928 they opened the Dove Valley Bakeries, producing Elkes Malted Milk and London Assorted biscuits, by which time the business was CH Elkes and Sons Ltd, Biscuit and Cake manufacturers.
We now believe the site is no longer commercially viable.
Management spokesman