Food manufacturer Bernard Matthews has announced the closure of its processing facility on Shaftesbury Street South in Derby, with operations ceasing by the end of 2026. The decision will result in approximately 600 job losses and has drawn criticism from local political leaders and trade unions representing the workforce.
The company made the announcement on Thursday following a 45-day consultation process that began on 1 July 2026. According to reports from the region, the final closure date has been set for 20 December 2026, with staff withdrawal to be phased as product lines wind down.
The Union of Shop, Distributive and Allied Workers (Usdaw) has expressed deep concern about the outcome. Sharon Khiari, the union's area organiser, stated that
confirmation of the closure of the Bernard Matthews site in Derby is a devastating blow for the staff, their families and the wider community. She added that the union was
extremely disappointed that the company has decided to proceed with the closure, despite our attempts to save the site through the consultation.
Baggy Shanker, the Labour MP for Derby South, has raised concerns about the timing and impact of the decision. He noted that learning of the closure just before Christmas would be particularly difficult for affected families.
The impact on the workforce and their families can't be overstated, particularly with this closure now being planned just a week or so before Christmas, he said.
Shanker highlighted his frustration that much of the work would be transferred to other Bernard Matthews facilities rather than retained in Derby.
Predominantly this work is being taken to other factories, and that is something I find very difficult - this work has been done here by these workers for a number of years, and the company's made a decision to take the majority of that work to other sites, so I've been challenging that. He indicated he would continue working with Usdaw to ensure workers' rights remained central to the process.
Councillor Nadine Peatfield, leader of Derby City Council, acknowledged the significance of the loss to the local economy. She said:
This is obviously very sad news for the employees involved and our sympathies go out to everyone facing uncertainty at this time. Bernard Matthews has been a part of Derby's business community for many years, and we recognise the important contribution that its workforce has made to the local economy.
Why is the factory closing?
Bernard Matthews attributed the closure to sustained financial difficulties and external pressures affecting the food manufacturing sector. The company cited
continued significant financial losses and a range of external economic challenges and the geopolitical environment, including Brexit, Covid and conflicts in Ukraine and the Middle Eastas factors in the decision.
According to the company's statement,
no viable mitigation has been identified that would allow the site to remain operational. The announcement follows an earlier decision to close the company's headquarters and production facility in Great Witchingham, Norfolk, where founder Bernard Matthews originally established the business.
In a broader statement, Bernard Matthews emphasised the challenges facing the UK food industry. The company said:
We are a proud British food business committed to providing quality, affordable food, that's better for people and the planet. For the past two years, we have urged the government to take urgent action to support the UK's fragile food supply chain. Farmers and food producers face rising costs and increasing complexity, which are restricting growth, driving food inflation and undermining the UK's food security. Without targeted government action on supply chain resilience, planning and taxation, we fear more farms and food manufacturing sites will close, increasing the UK's reliance on lower-quality imports and weakening food and national security.
What support will be available to workers?
Bernard Matthews has committed to exploring redeployment opportunities within its wider business operations. According to the company's position, it will also work with local entities to identify alternative employment options for affected staff.
Usdaw said it was providing support to members through the closure process. The union indicated it would continue to advocate for workers' interests during the phased wind-down.
A government spokesperson acknowledged the concerns raised by the closure. The statement said:
While this is a commercial decision for Bernard Matthews, we understand that this is a concerning time for workers and their families. A broad range of support is available for those affected. We are building stronger, more resilient food supply chains working with industry, including through our new Farming and Food Partnership Board, to strengthen our domestic food security.
What other operations does Bernard Matthews maintain?
The Derby facility represents one of the company's major processing sites. Bernard Matthews continues to operate processing and production facilities in Sunderland and Holton, Suffolk, where some of the work from Derby is expected to be relocated.
The closure of the Derby site follows the company's 2024 announcement regarding its Great Witchingham headquarters in Norfolk, where Bernard Matthews founded the business decades ago. The company has faced mounting pressures across its operations as it navigates challenging market conditions and rising operational costs.
What happens next?
The phased closure will proceed through to 20 December 2026, with staff being withdrawn in stages as production lines cease operations. Bernard Matthews will continue consultation with unions and workers throughout the wind-down period to manage the transition and explore alternative employment pathways where possible.
The closure adds to a pattern of significant manufacturing and production site shutdowns affecting the UK food and manufacturing sectors. Earlier in 2026, similar announcements have affected other long-established businesses across the country, raising broader questions about the resilience of domestic food production and manufacturing capacity.
Key Facts
- Bernard Matthews will close its Derby processing facility by 20 December 2026, resulting in approximately 600 job losses
- The decision followed a 45-day consultation period that began on 1 July 2026, concluding that no viable mitigation could sustain the site's operations
- The company cited sustained financial losses and external economic pressures, including Brexit, the pandemic, and geopolitical conflicts, as contributing factors to the closure
- Bernard Matthews continues to operate facilities in Sunderland and Holton, Suffolk, where some Derby work is expected to be transferred
- The company has committed to exploring redeployment opportunities within its wider business and working with local organisations on alternative employment options
