Land sale helps Fletchers rise from the ashes

The Sheffield-based Fletchers Group of Bakeries has completed a multi-million pound land sale, paving the way for a raft of improvements.

The deal, to sell three acres of brownfield land next to its site in Wadsley Bridge to Sainsbury’s, will enable the company to reconfigure its plant.

It will create a new production and despatch facility.

Fletchers Group was devastated by a fire in 2006 which destroyed 40 per cent of the production capacity at its Claywheels Lane site.

However, the business has been turned around by the current management.

The company has moved from a 2007-08 operating loss of almost £10m to an operating profit of nearly £500,000 in this financial year.

Fletchers Group dealt directly with Sainsbury’s on the sale of the land, which has planning permission for a new superstore.

Stephen Holding, the managing director of the Fletchers Group of Bakeries, said: “The completion of the land sale at Claywheels Lane will provide a cash injection which is earmarked for a significant upgrade to the site and pave the way for business growth.

“Fletchers Group will re-invest proceeds from the land sale directly into its Sheffield operations, helping to provide employment for more than 350 staff.”

Mr Holding said it would lead to improved technical standards and greater efficiency, which would make the firm more competitive.

He added: “The project to invest the land-sale funds has started almost immediately, and it will take approximately 12 months to restructure the plant, modify existing buildings, landscape the grounds and surface a brand new car parking area.”

The company invested more than £3m last year, including a new plant at its Sheffield site to make English muffins, a significant growth area.

There are four businesses within the group – Fletchers Sheffield, LBD in Barnsley, Kara in Manchester and Grain D’Or in London.