Bernard Matthews has reversed its decision to close its Derby food processing factory after securing a new major customer, safeguarding around 400 jobs previously threatened by the planned shutdown.
However, between 100 and 150 positions remain at risk of redundancy as the business prepares to consult employees over a revised operating structure at the Shaftesbury Street facility.
The announcement marks a significant change in fortunes for the site, which had been scheduled to close on 20th December following a period of sustained financial losses.
The company, owned by Ranjit Singh Boparan’s Boparan Private Office, said additional production volumes from the new customer would provide sufficient demand to keep the factory operational.
The identity of the customer and the financial terms of the agreement have not been disclosed.
Bernard Matthews began a 45-day consultation over the proposed closure on 1st July, placing approximately 600 jobs at risk.
In August, the company confirmed that the Derby factory would shut after failing to identify a viable alternative to closure. The manufacturer cited sustained financial losses and mounting operational pressures, pointing to the impact of Brexit, the Covid pandemic and international conflicts on costs and supply chains.
The decision prompted concerns from trade union Usdaw and local representatives about the potential impact on employees and the wider Derby economy.
However, further discussions with customers and stakeholders have now resulted in an agreement to maintain production at the facility.
In its latest announcement, the company confirmed that the new customer agreement would allow the Derby facility to continue operating, although the revised production arrangements mean some positions remain under threat.
A Bernard Matthews spokesperson said: “This is very positive news for the Derby community and for the hundreds of colleagues whose jobs will now be saved. We are pleased to confirm that the Derby site will remain operational, and securing this new customer provides a stronger foundation from which to build a sustainable future.”
The business said it would continue working with local agencies and elected representatives to identify alternative employment opportunities for workers affected by the proposed redundancies.