Morton's Rolls restart production after rescue

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Soft Morton's rollsImage source, Morton's Rolls

Production has restarted at Scottish bakery Morton's Rolls on Sunday after the firm was bought out of administration by a consortium.

About 110 workers - nearly half of the previous workforce - were recalled to work immediately after being made redundant earlier this week.

Morton's was bought by investors PVL after talks with HMRC, administrators and the Scottish government.

PVL said it was confident it could turn the company's fortunes around.

It added that it planned to take on further jobs "in the short, medium to long term if the right support is available".

It is understood that the new owners will initially focus on core products, including its traditional crispy rolls.

They plan to crank up production to its previous level of one million rolls a week.

Drumchapel-based Morton's ceased production on 3 March after suffering financial difficulties.

Redundancy notices were later sent out by a provisional liquidator from FRP Advisory, who was appointed following Morton's Rolls' collapse.

The company attributed its problems to the Covid pandemic and the rise in energy prices "exacerbated by contractual obligations to large supermarkets".

'Bittersweet moment'

PVL representative John McIlvogue said: "This is a bittersweet moment for me, for the people who work here and for the wider community that relies on the jobs this factory provides.

"None of us wanted the past couple of weeks to unfold in the way that they have, but it has been entirely outwith our control.

"The important thing now is that Morton's is back in action, we've got the workforce back on the production line, and we're ready to start producing our famous rolls that the good people of Glasgow have been crying out for."

Image source, Morton's Rolls
Image caption,

Morton's bakery is based in Drumchapel, Glasgow

Mr McIlvogue said that while the business was "undoubtedly viable", its factory was "antiquated and in need of a serious overhaul".

He added: "That's where we need the help of the Scottish government and its agencies, something we are hopeful we can iron out in the coming weeks."

'Sense of relief'

Glasgow Labour MSP Paul Sweeney, who helped to support the takeover negotiations, welcomed the latest developments.

He said: "It is with a sense of relief that after almost two weeks of intense, detailed discussions, production will now restart at Morton's Rolls and over 100 jobs have been saved.

He added: "These circumstances are by no means perfect, and there is still work to be done to make sure Morton's is a sustainable business that can thrive for generations to come.

"There is a commitment from the government to make sure they do everything in their power to make sure that is the case, and I will do everything in my power to hold them to that commitment."

The Scottish government welcomed the re-employment of some of the staff made redundant after the company ceased to trade, and said it would support those still affected.

A spokesman added: "Business Minister Ivan McKee and Scottish Enterprise have both spoken with the investor and have asked for detailed information on proposals for the future of the Morton's Rolls site. We await those details.

"Those employees who are still affected by the closure of Morton's Rolls remain our immediate priority.

"The Scottish government's initiative for responding to redundancy situations, Partnership Action for Continuing Employment (Pace), will continue to offer support to affected employees."

Morton's Rolls was originally founded by Bob Morton and Jim Clarke in 1965 at their bakery near Drumchapel, in the west of Glasgow.

Over the years, Morton's expanded its product range to include savoury products such as pies and bridies, and sweet offerings including apple turnovers and doughnuts.