A bakery that has been in Eastleigh for 70 years is to close.

Manor Bakery will cease production by December, 2005. The landmark factory, built as Price's bakery in the 1930s, bakes Mr Kipling and Cadbury cakes, as well as own-brand pies and snacks.

Manor is owned by RHM, which has three other sites. Jobs will move north under the revamp, which will see RHM invest £45m in modernising its factories at Stoke-on-Trent and at Carlton, near Barnsley. They will gain 350 jobs, but the changes will still mean a 330 net loss across the country.