Hovis bread maker Premier Foods has announced that it is to close two UK bakeries and cut 900 jobs as part of plans to overhaul the struggling business.

The company has seen its Hovis division hit by intense competition in the bread market and a surge in wheat prices caused by poor weather.

The worst-hit will be Birmingham, wher 511 jobs are to be lost with the closure of a factory and distribution operation.

Hovis operations in west London will also close, costing 196 jobs. Premier Foods is also preparing to shut distribution sites in Plymouth and Suffolk, resulting in the loss of a further 95 jobs.

The closures are subject to consultation with employees but are scheduled to take place during the course of next year.