Morrisons hires advisors as it eyes sale of bakery business
Discussions over its sale are reportedly at an early stage, with no guarantee that a deal will take place
Morrisons has reportedly drafted in advisers to explore the potential sale of its bakery business, as part of plans to offload assets in order to pay down its debts.
According to The Telegraph, the supermarket is now working with Deloitte to explore potential interest in Rathbones bakery, which supplies baked goods to Morrisons’ supermarkets.
Discussions over its sale are reportedly at an early stage, with no guarantee that a deal will take place.
However, sources suggested to The Telegraph that private equity firm Endless, which owns Hovis and the cake company Bright Blue Foods, could be a potential buyer.
Rathbones, which is based in Wakefield, produces more than 50,000 tonnes of baked products each year. Morrisons has owned the bakery since 2005 after it rescued it from administration.
A potential sale would help Morrisons pay down its debt pile, with borrowings of more than £5bn after it was bought by US private equity firm Clayton, Dubilier and Rice in 2021.
Last month, the group secured a £2.5bn deal to sell 337 of its petrol stations to Motor Fuel Group, a move that is also expected to help reduce its debt, which currently stands at around £5.7bn.
Morrisons declined to comment.
