Bakers Oven brand axed in Northeast
Greggs has axed its Bakers Oven division in the Northeast of England.

Fourteen of the 63 Bakers Oven shops in the Northeast, Yorkshire and Scotland will be closed, while 49 will be re-branded as Greggs, or will be transferred to the Bakers Oven Midlands operation.

Some 200 jobs will go as the baker closes the stores and changes its supply arrangements.

The closures are expected to cost£2.5 million, but are expected to enhance annual profit by some£1.25 million from the next financial year.

The news came as Greggs announced a fall in profits of£12.5 million before tax for the 24 weeks ended 17 June, compared with£15.6 million for the same period last year. Sales for the 24 weeks ended 17 June were£243.1 million, up from£235.9 million the same period last year.

A rise in the retailer's energy costs was blamed for the fall in profits.