IN Brief:
- The Shaftesbury Street factory will remain operational after Bernard Matthews secured a new anchor customer.
- Approximately 400 jobs previously threatened by the closure have been safeguarded.
- A revised operating model requires further consultation, with another 100–150 positions remaining at risk of redundancy.
2 Sisters Food Group has reversed plans to close its Bernard Matthews turkey processing factory in Derby after securing a new major customer, preserving manufacturing operations at the Shaftesbury Street site and safeguarding approximately 400 jobs.
The decision, confirmed on 5 November 2026, follows an extended review of the factory’s commercial position. Additional production demand from the newly secured customer has provided a basis for keeping the operation open after sustained financial losses prompted the original closure proposal in August.
The revised plan will not preserve every position at the site. Between 100 and 150 roles remain at risk of redundancy, and the business will enter further consultation with the affected employees and their representatives over its future workforce arrangements.
The customer has not been identified, and 2 Sisters has not disclosed the financial terms, contract duration or production volumes associated with the new business. The company has nevertheless confirmed that the additional demand is sufficient to reverse its earlier decision to cease manufacturing at Derby.
The factory produces processed turkey products, including dippers, nuggets and strips, and forms part of the Bernard Matthews food manufacturing business. These products require preparation, forming and cooking or coating operations appropriate to the individual specification, followed by packaging and distribution.
Such operations depend on a combination of specialist equipment, production employees, ingredient supply, quality controls and access to customers purchasing sufficient volumes to support the manufacturing base. The commercial position of an individual factory can therefore change substantially when a significant customer contract is gained or lost.
Bernard Matthews had previously planned to close the Shaftesbury Street operation before the end of 2026. That decision followed continuing losses and uncertainty about whether the available production demand could support the site on a sustainable basis.
The new agreement changes the volume assumptions underlying the earlier assessment. Production that would otherwise have ended can now continue, allowing the company to retain operational capacity and a large proportion of its existing workforce rather than complete the planned shutdown.
A food processing factory incurs costs that do not disappear immediately when throughput falls. Building operation, engineering maintenance, utilities, technical management and other essential functions must still be supported even when individual production lines are running below their available capacity.
Lower output can consequently increase the proportion of those costs attributed to each finished product. Where sales volumes fall sufficiently, a plant may struggle to cover its operating expenditure despite retaining equipment capable of manufacturing to the required standard.
Additional contracted demand can improve the position by allowing available production capacity to be used more consistently. Its value depends on the selling price, manufacturing cost and compatibility of the new products with existing equipment, however, rather than production volume alone.
At Derby, the company has not supplied a revised cost forecast or quantified the factory’s future utilisation rate. It has described the customer agreement as providing the operational demand necessary to support continued production, without guaranteeing a particular level of profitability.
The focus now turns to stabilising the workforce and incorporating the new customer’s requirements into the manufacturing operation. That process will need to be managed alongside the proposed changes to staffing and the consultation affecting the remaining positions.
Individual customer programmes can involve different product specifications, packaging formats and delivery requirements. Factories must accommodate those arrangements within their production schedules and quality systems, although 2 Sisters has not described the particular production changes planned for the new Derby contract.
The company has referred to a revised operating model, indicating that the site will continue under arrangements different from those in place before the closure decision. It has not published a complete staffing structure or identified which functions will be affected by the proposed redundancies.
Consultation will therefore be important in determining the final employment position. The number of roles currently at risk is a proposal, not an announcement that all the affected employees will lose their jobs.
2 Sisters has committed to working with local organisations and employee representatives to identify alternative employment opportunities where positions cannot be retained. Derby South MP Baggy Shanker and regional USDAW representative Sharon Khiari have been involved in discussions over the factory’s future.
The company also acknowledged the involvement of employees and trade union representatives throughout its review. Their discussions continued after the original closure proposal, during a period when alternative commercial arrangements were being explored.
A Bernard Matthews spokesperson welcomed the agreement as a basis for continuing production and developing a more sustainable operation. The business has described retaining the factory as a positive development for employees and the surrounding community, while recognising that further consultation is still required.
Shanker welcomed the decision to protect around 400 positions and said support would continue for employees affected by the remaining workforce changes. His involvement has included discussions with the business, union representatives and local organisations concerned about the possible loss of manufacturing employment.
The reversal also preserves an established processing facility that would otherwise have ceased operating. Maintaining the factory avoids the immediate disruption associated with closing a plant, disposing of equipment and losing the manufacturing capability accumulated at the site.
Retained production capacity can provide a foundation for further business, although no additional customer contracts or investment projects have been confirmed as part of the November decision. The immediate commercial benefit rests on the newly secured anchor customer and the production volume it brings.
The agreement comes against a backdrop of pressure on food manufacturers to balance labour, energy and raw material costs with the prices available through customer contracts. For an individual processing site, that balance is closely connected to the quantity and complexity of products moving through its lines.
A factory may operate efficiently from a technical perspective yet face financial difficulties if too little demand is available to support its cost base. Conversely, a new customer can change the operating position without necessarily requiring the construction of additional manufacturing capacity.
The Derby decision demonstrates that relationship through a concrete change in contracted demand. Its effectiveness over the longer term will depend on whether the site can manufacture the new customer’s products reliably while meeting the costs of its revised operating arrangements.
The next confirmed steps are incorporating the additional production programme, maintaining operations and completing the consultation concerning 100–150 remaining at-risk positions. Around 400 jobs have been safeguarded by the reversal, but the employment and operating arrangements at the retained factory have not yet been fully settled.
