(Image: Gareth Fuller/PA Wire)
Greggs is to shut its County Durham factory as part of plans which will put around 740 jobs at risk.
The high street bakery chain has announced plans to close four of its factories over the next two-and-a-half years, including its site in Seaham, County Durham.
Factories at Enfield in Greater London, North Lakes near Penrith in Cumbria and Pettigrews in Kelso, Scotland, are also set to close.
The proposed changes will see parts of Greggs' manufacturing process relocated as the company looks to consolidate its operations.
The changes will cost the firm around £60m, including disruption costs and redundancy payments.
However, Greggs said the plans are expected to save around £20m across the 2028 and 2029 financial years.
The company said the proposals will also affect manufacturing operations at its Treforest site in Wales, which will continue to operate as a distribution centre.
Greggs will reduce the range of products manufactured at its Clydesmill Glasgow and Manchester sites, while manufacturing of tinned bread at Gosforth will also stop.
A small number of products will instead be sourced from specialist suppliers.
Greggs said its retail shops will not be affected by the changes.
The announcement came as the company revealed sales rose by 7.7 per cent in the three months to September 26 compared with the same period last year.
It said trading improved during the quarter following product launches and “more settled weather” in August and September.
The retailer said this represented progress despite “challenging market conditions”, with consumer finances continuing to come under pressure.
Like-for-like sales increased by 3.4 per cent across Greggs' managed stores, with overall growth boosted by new shop openings.
The company has opened 95 new shops and closed 38 so far this year, taking its total estate to 2,796 shops.
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That represents 57 net new openings, with Greggs expecting to have between 100 and 110 net new shops by the end of the year.
Greggs said current cost inflation is “well managed” and is expected to remain at around two per cent for 2026.
However, bosses warned there are “signs of greater inflationary pressures in 2027” as higher energy costs feed through.