British bakeries are undergoing a major restructuring following the acquisition of Hovis by Allied Bakeries. Allied Bakeries has removed the remaining board members at Hovis Group, signaling a significant overhaul of the brand’s leadership. The move comes as the company’s latest accounts reveal tumbling sales and a sharp rise in financial losses.
Turnover dropped 3.8% in the year to 28 September 2025. Volumes fell by 2.9% during the same period. The company’s pre-tax losses have more than doubled to £20.3m. On the day the deal was completed in July 2026, the combined business was renamed to Hovis Bakeries.
Fresh Companies House documents show that chief commercial officer Alistair Gaunt, chief operations officer Chris Bradley, and chief finance officer Jamie McComasky have all departed the business. Their exit follows that of former CEO Jon Jenkins, who left shortly after the acquisition was announced in August 2025. The current leadership is headed by former Allied Bakeries CEO Sarah Arrowsmith, with Allied financial director Graeme Burnett remaining in his role.
Arrowsmith stated that the financial results were “in line with what was expected” following the merger. She explained that the team would spend the first few weeks of ownership understanding the company’s exact position before tweaking the strategy for the integration.
Market challenges and restructuring
In its accounts, Hovis cited a tough bread market and delistings as the primary reasons for the fall in volumes. Despite these challenges, the company noted that it had secured “significant” new private-label SKU listings with a national retailer. Revenues were also bolstered by growth in its logistics business, which carries competitor products for an unnamed major retailer.
The company now operates 26 sites across the UK with around 5,500 employees. However, a significant restructure is expected to follow the merger. ABF, the parent company of Allied Bakeries, acknowledged that the deal would impact profits in 2027. The group said the move would help return both businesses to growth and profitability.
Arrowsmith told The Grocer that funding agreements secured from ABF would support significant new marketing and NPD initiatives. The goal is to revitalise sales and bring the brands back into “relevance” after years in decline. “We want to come out fighting,” she said.
For the thousands of workers at these sites, the shift in ownership brings uncertainty. The departure of long-standing executives and the promise of a restructure suggest that familiar production lines and store relationships may soon change. The coming months will determine if the financial losses can be reversed.
Looking at the broader economic picture, the sporting calendar can have a surprising impact on local commerce. For instance, the excitement surrounding major international tournaments often drives a spike in consumer spending. World Cup boosts June retail sales as fans purchase merchandise and upgrade home viewing setups.
