Morrisons is evaluating 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.
Myton Food Group, rebranded in 2023 from Morrisons' in-house manufacturing operation, operates 19 production sites across the UK and employs 6,678 people. The division covers meat, seafood, produce, chilled foods, horticulture, bakery, eggs, and pet food.
No formal sale process or adviser has been announced. Financial accounts for the division are not publicly available, with the registered entity listed as a dormant holding vehicle. One disclosed unit, Rathbones bakery in Preston, previously reported revenue above £60 million before its closure in January 2026, which resulted in 115 job losses.
At group level, Morrisons reported revenue of £15.8 billion for the year to February 2025, an increase of 3.2%. EBITDA remained at £835 million, while the group recorded a pre-tax loss of £381 million, including a £281 million debt interest cost. Net debt stands at approximately £3.1 billion, reduced from earlier levels through asset disposals and refinancing.
Previous disposals include the 2021 sale of the company's petrol forecourt estate for £2.5 billion. The potential sale of Myton Food Group is part of the same debt reduction approach.
Market conditions are also affecting the business environment. Higher oil prices are increasing logistics costs, with impacts on food pricing. UK inflation is forecast to reach 3.5% or higher in 2026, with some fresh produce categories, including tomatoes, peppers, and cucumbers, facing price increases of up to 15% in the short term. Household energy costs are expected to rise by around £250 per year.
Morrisons previously explored a sale of its manufacturing and distribution operations in 2022. The rebranding of Myton Food Group in 2023 was linked to plans to supply external retail and wholesale customers, positioning the division as a standalone operation.
Morrisons declined to comment on the potential sale.
Source: Business Sale Report
