Finsbury Food Group (Finsbury), a UK-based manufacturer of cake, bread and morning goods, plans to close its Grain DOr factory.

The decision to close the factory was taken as it was losing money. The closure of the facility is expected to be completed by 2 December.

Grain DOr factory incurred an operating loss of £3.33m on revenues of £28.5m over 12 months.

The closure is part of the company’s strategy to make investments in profitable product niches to drive market growth and value within speciality bakery in the long term.

"Grain DOr factory incurred an operating loss of £3.33m on revenues of £28.5m over 12 months."

The company noted that due to the products it manufactures, the facility trades in a particularly competitive environment, leading to competition for contracts and loss-leading pricing. Since the year end in June, Grain DOr trades has lost two major contracts, affecting its financial performance.

The bakery company anticipates that it will further benefit from the cancellation of planned capital investment programmes in Grain DOr.

Upon completion of the closure, Finsbury plans to focus on the profitable markets and will continue to invest in support of its strategy to drive efficiency and profitable scale.

Finsbury Food Group produces and supplies a wide range of bakery goods to a broad range of blue-chip customers within both the grocery retail and foodservice sectors.