Morrisons is considering a potential sale of its food manufacturing division, Myton Food Group, as part of efforts to reduce debt following its £8.7 billion acquisition in 2021.
The Myton Food Group, which was rebranded in 2023 from Morrisons’ in-house manufacturing operation, operates 19 production sites across the UK and employs 6,678 people.
This division encompasses a diverse range of products, including meat, seafood, produce, chilled foods, horticulture, bakery, eggs, and pet food.
No formal sale process or adviser has been announced yet, although the move aligns with Morrisons’ strategy to streamline operations and focus on core retail activities.
Despite the absence of publicly available financial accounts for the division, the registered entity is listed as a dormant holding vehicle.
- Morrisons plans to sell Myton Food Group to reduce debt.
- Myton operates 19 sites and employs 6,678 people across the UK.
- Company reported a pre-tax loss of £381 million amid restructuring.
- No formal sale process has been initiated for Myton Food Group.
- Divesting may help Morrisons refocus on core retail operations.
One unit, Rathbones bakery in Preston, had previously reported revenue exceeding £60 million before its closure in January 2026, resulting in 115 job losses.
On a broader scale, Morrisons reported a revenue of £15.8 billion for the year ending February 2025, marking a 3.2% increase.
However, the group recorded a pre-tax loss of £381 million, largely due to a £281 million debt interest cost, with net debt standing at approximately £3.1 billion.
The potential sale of Myton Food Group is part of Morrisons’ broader approach to debt reduction, which has previously included the 2021 sale of its petrol forecourt estate for £2.5 billion.
Market conditions are also exerting pressure on the business, with higher oil prices leading to increased logistics costs and impacting food pricing.
The UK is facing an inflation forecast of 3.5% or higher in 2026, with certain fresh produce categories, such as tomatoes, peppers, and cucumbers, experiencing price hikes of up to 15%.
Additionally, household energy costs are expected to rise by around £250 per year, adding further strain on consumer budgets.
Morrisons had previously explored a sale of its manufacturing and distribution operations in 2022, and the rebranding of Myton Food Group was linked to plans for supplying external retail and wholesale customers.
This move positioned the division as a standalone operation, potentially increasing its appeal to prospective buyers.
While Morrisons has declined to comment on the potential sale, the strategic decision to divest Myton Food Group could provide the necessary capital to navigate financial challenges and refocus on its core retail business.
