Morrisons is in talks to supply pies, meat, eggs and other products to rival British supermarkets through its Myton manufacturing arm as the debt-laden grocer steps up efforts to improve profitability following years of losses and a £3.1 billion net debt burden.

The Telegraph reported that the Bradford-based retailer has invited representatives from major grocers to visit Myton factories in recent weeks as it seeks new supply agreements for the business, which operates 17 manufacturing sites across the UK. Myton already produces sweet and savoury pies, meat, fish, eggs and flowers for Morrisons and supplies some independent retailers.

The company is seeking to expand Myton’s customer base beyond its own stores and is targeting both supermarket competitors and large hospitality operators. According to The Telegraph, recent showcase events were used to promote British-made produce to potential customers, while executives believe spare production capacity across the manufacturing network could support additional contracts.

A Morrisons spokesman told the paper: “Myton is a high-quality food manufacturing business and has always served other customers as well as Morrisons.

“We have been growing this area of the business over recent years by attracting new customers in retail, food service and food manufacturing, to build a broader base for the business both in the UK and internationally.”

The expansion drive comes as Morrisons attempts to recover from mounting financial pressure linked to its £10 billion takeover by Clayton, Dubilier & Rice in 2021. The supermarket reported losses of £381 million for the year to 26 October, including a £281 million debt interest bill, while net debt stood at £3.1 billion.

Rami Baitiéh, chief executive of Morrisons, previously defended the manufacturing arm as a distinguishing feature for the supermarket. In comments reported by The Telegraph in January, he said manufacturing was part of the “DNA of Morrisons – it’s going to stay”.

The Telegraph previously reported that Morrisons had explored a potential sale of the Myton division earlier this year after receiving an unsolicited approach and holding discussions with at least one private equity firm. The retailer has already restructured parts of the unit, including the closure of its bakery operations in Wakefield after the site suffered what the company described as “significant losses”.

Morrisons last week announced plans to close around 100 loss-making Morrisons Daily convenience stores following a review of its estate, putting hundreds of jobs at risk. The retailer said many of the affected stores, which were acquired through its takeover of McColl’s in 2022, had struggled financially for several years despite attempts to improve performance.

Morrisons said the closures had been made harder to avoid because of “significant cost increases resulting from government policy choices”. The supermarket has been facing higher wage costs, increased employer National Insurance contributions and new recycling levies, while it has also recently cut jobs at its Bradford head office and closed cafés, florists and fresh food counters as part of a broader cost-cutting programme.

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