Scotbake set to close bakery due to high production costs with 12 jobs lost

An Inverness-based business is set to axe its bakery production due to high costs with 12 jobs set to be lost.

Scotbake will cease its baking production in July and has informed all its customers of the decision.

Managing director of the firm, Derek Smith spoke to The Inverness Courier about the ‘difficult decision’ to close the bakery to concentrate the business efforts on its distribution and dispatch services.

He said: “Production costs pressures such as high energy costs, ingredients and increased labour costs have eroded our production profit margin.

“Looking ahead I couldn’t see things improving and so that’s why we’ve decided to close the bakery at Scotbake.

“It’s incredibly sad that 12 people are losing their jobs and it has been a difficult decision.”

He added: “It does mean that over 40 jobs will be protected and we are concentrating our efforts on our distribution and dispatch services.”

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