4 January 2013 Last updated at 10:39 ET

Job losses in closure of Warburtons' Blackpool bakery

Warburtons has announced the loss of 55 jobs as it closes its bakery in Blackpool.

The firm said the Brindwell Road site closure was due to decreased household spending and increased competition.

Chairman Jonathan Warburton said closing a bakery "is the hardest decision our family business has to make".

Geoff Atkinson, of the Bakers, Food and Allied Workers Union said the news was a "massive blow for the area".

He added: "It's a very sad day. It's affected a lot of families - a lot have worked there for generations.

Budget pressures

"We were expecting the worst and the worst happened. We have been providing re-training for workers."

The company, which employed 73 people, has found alternative roles or granted early retirement for 18 employees.

Production will finish at the factory at the end of January.

Mr Warburton said: "The last year has been particularly challenging due to a number of changeable factors including further pressure on household budgets and an increasingly competitive market.

"The changes to our manufacturing operations ensure we can continue to meet the demands of our customers and consumers and will ensure a stable future for the business."

Warburtons, which was established in a grocery shop in Bolton in 1876, employs about 4,500 employees in 12 bakeries and 13 depots across the UK, and produces more than two million bakery products each day.