Morrisons is exploring the potential sale of its bakery business in a bid to sell off assets to reduce its debt pile.
The supermarket giant has hired advisers at Deloitte to search for a buyer for Rathbones bakery, a factory that supplies baked good to Morrisons, The Telegraph reported.
It is thought that any discussions over the potential sale are at an early stage and there is no certainty that a sale will go ahead.
Industry sources told the publication that Hovis owner, private equity firm Endless, could be a potential buyer.
A deal for the bakery site would help the grocer pay off some of its more than £5bn debt pile.
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The site, which has been owned by Morrisons since 2005, produces over 50,000 tonnes of baked items every year.
Accounts for the bakery’s trading company Rathbone Kear show that it made pre-tax profits of £737,000 from sales of £62m in 2022.
Last month, Morrisons sold 337 of its petrol forecourts to MFG in a £2.5bn deal, as it took a minority stake in the petrol station giant. It is thought that funds from the acquisition will allow the retailer to partially reduce some of its debt.
