Avana Bakeries in Newport sold to new food company
A bakery in Newport which was threatened with closure has been sold, its owners have confirmed.
Avana Bakeries has sold its food processing site in Rogerstone to Food Utopia, which it said would aim to keep the current operation going.
In February the company said 650 jobs were at risk after it lost a multi-million pound cake contract with Marks and Spencer.
There are currently 552 people still employed at the Newport site.
A spokesman for Avana said: "Avana Bakeries is pleased to announce the sale of its food processing site in Newport.
"It is proposed to operate the business under a new company, Food Utopia Ltd, which will aim to secure continuing operations.
"There will be a transition period as existing customer contracts transfer to the new company."
He said the new company was not part of the 2 Sisters Group which owns Avana but had been set up by two former 2 Sisters executives.
Any decision on jobs would be the responsibility of the new owners, he added.
2 Sisters had launched a consultation period with staff following the news earlier this year that the company had lost the Marks and Spencer deal, which made up 85% of the bakery's products.