Morrisons Explores Rival Supply Deals to Cut £3.1bn Debt — Morrisons Debt Management

Morrisons debt management is widening beyond store closures. The supermarket is exploring supply agreements that could put pies, meat and eggs from its Myton arm on rival supermarket shelves, a move aimed at making better use of spare production capacity while the business carries £3.1bn of net debt.

The push matters because Morrisons reported £381m of losses for the year to Oct 26, following a £281m debt interest bill. For suppliers, competitors, and wholesale buyers, the question is whether Myton can turn unused factory capacity into steadier revenue instead of leaving it tied almost entirely to Morrisons’ own stores.

Myton Moves Beyond Morrisons

Morrisons is seeking to expand Myton by supplying rival supermarkets and hospitality firms. The supermarket has invited representatives from major retailers to visit its factories, a sign it wants new supply deals rather than one-off promotional arrangements.

Rami Baitiéh has already set the strategic tone. In January, the chief executive said manufacturing was part of the “DNA of Morrisons – it’s going to stay”. That makes the current outreach more than a side project: it is an attempt to use the production arm as a broader commercial engine.

The products named for possible rival supply include pies, meat and eggs. Those are everyday items with recurring demand, which makes them useful for testing whether Myton can scale outside the company’s own shelves without leaning on a single customer base.

£3.1bn Debt After 2021 Takeover

£3.1bn of net debt is the burden sitting behind the strategy. Morrisons said that debt is linked to Clayton, Dubilier & Rice’s £10bn takeover in 2021, and the latest annual loss shows how much of the cash generated by the business is still being absorbed by financing costs.

£281m in debt interest pushed the year to a £381m loss, which is why the company has also been trimming other parts of the estate. Morrisons recently announced the closure of 100 convenience stores and has shuttered a number of cafés and counters as it cuts costs and tries to revive profits.

Myton has been growing by attracting new customers in retail, food service and food manufacturing, according to a Morrisons spokesman. “Myton is a high-quality food manufacturing business and has always served other customers as well as Morrisons.”

Rival Shelves, Broader Revenue

“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.” That wider base is the real commercial prize here: if Morrisons can sell more product through other chains and hospitality buyers, it reduces dependence on store-level trading alone.

“Myton does not comment on the detail of its customer relationships.” The line leaves the pace and size of any deals undisclosed, but it also shows Morrisons is not treating the move as a one-off press exercise. It is opening a manufacturing channel that could sit alongside the core supermarket business.

For Morrisons, the next step is practical rather than theoretical: turning factory visits and supplier talks into contracts that can absorb spare output. If those agreements land, the group gets a larger wholesale base just as debt service remains heavy and cost cutting continues.