Rob Shorrock

Grantham's largest employer, Fenlands Foods is to be closed and mothballed by parent company Northern Foods. Fenland supplied ready meals to M&S, which was the only client of this factory. The GMB has, quite rightly, decribed this as a devastating to the community and has pledged to fight it. See GMB Press release here. Labour MP for Grantham Quentin Davies said: "This is a terrible day for Grantham - it's going to be a devastating blow, not just for 700 people but also their families. A plant depending on a single customer is an accident waiting to happen, but I'm horrified it should happen this way, with out warning, and I shall be asking why.

"It's the worst blow that has befallen Grantham while I have been MP."

It is slightly confusing as to the key perpertrator; Northern Foods state, 'This is in accordance with our strategy to continue with business only where terms generate an adequate return for the Group's shareholders. The Group plans to mothball the Fenland site.'. Fenland made no profit last year, althought it has made profits previously. M&S, on the other hand, are pursuing a strategy of cost cutting with all it suppliers and this confluence of events has resulted in the action by Northern Foods.

Northern Foods is looking for a buyer for the site or the possibility of developing another product range by 2010. They have started that this should not affect their headline profits for this year.

Both companies boast corporate social responsibility policies. M&S has set out its business ethics in it report 'How We Do Business',. and was Business of the Year 2006 in this field.

Page 9 states 'we want to be a fair partner and improve the lines of hundreds thousands of people in our supply chains and local communities.'

The people of Grantham may want to write to Stuart Rose and ask him how the current policy of squeezing suppliers meets this objective. Stuart can be reached on stuart.rose@marks-and-spencer.com