A PRODUCTION line at a major Hampshire bakery that had been due to close in June could remain open until the end of the year, unions have revealed.

The Bakers, Food and Allied Workers Union said while many of the 82 staff being made redundant at Eastleigh ’s Hovis factory had left, a skeleton day shift could keep going until the end of the year. The production line had been due to grind to a halt in mid-June.

A spokesman from Hovis owner Premier Foods said it could not give an actual date when the final closure would take place because of “fluctuations in capacity from other sites.”

It comes as Premier this week reported a two per cent rise in sales from its eight frontline brands, including Hovis, in the first half of this year.

The firm, which has been struggling under a £1.2 billion debt mountain, hopes it is on the mend after sealing a £1.4 billion refinancing deal with banks and £40m of cost savings ahead of plan by the end of this year.

The ongoing restructuring meant it recorded bottomline losses of £27.3m, compared with profits of £11.2m last time. Trading profits from its eight main brands were 3.2 per cent higher at £53.2m.

The Daily Echo revealed in February how the Toynbee Road Hovis factory had been earmarked for closure in the latest hammer blow for manufacturing in the town.

In June 2004 Manor Bakeries revealed it was axing the Mr Kipling factory there with the loss of 423 jobs.