Wm Morrison Supermarkets Limited has hired advisers to explore the potential sale of its bakery business, as the supermarket considers offloading assets to pay down debts. The Bradford-based retailer is working with Deloitte to field interest in Rathbones bakery, a factory in Wakefield, West Yorkshire, that supplies baked goods to Morrisons' supermarkets. Discussions over Rathbones are thought to be at an early stage and there is no guarantee that a sale will take place.

However, industry sources suggested that private equity firm Endless LLP, which owns Hovis and the cake company Bright Blue Foods, could be a potential buyer. The Rathbones site produces more than 50,000 tons of baked products each year, including crumpets, bread rolls and hot cross buns.