The iconic Timaru bakery May's is letting six staff go.

However, up to 40 jobs could be on offer when the company builds a multimillion-dollar bakery this year.

Owner Bernie Sugrue yesterday confirmed there had been four redundancies at the Timaru stores, while two staff at the Temuka May's Cafe had opted to take over the business, effective from last Monday.

"I knew when I bought the business there were inefficiencies there and it was making a loss. In the end I couldn't sustain the loss. As a director I have responsibility to make sure the company is not insolvent."

He is in the process of purchasing a building for a processing factory.

"We will be investing heavily in Timaru; it is a multimillion-dollar project.

"When it is up and running the staff are welcome to apply for jobs at the processing plant, which could employ between 30 to 40 people."

The factory will produce pies, European artisan breads and par-baked breads to be sent around New Zealand as well as exported.

"We want to keep the May's brand and expand it," he said.

"It was sad to make the staff redundant and I wish them the best. I know they will be able to get jobs with their skills."

He expected the factory to be up and running in six or seven months. Ironically Mr Sugrue has come full circle after missing out on an apprenticeship at May's when he was 15.

Mr Sugrue also owns McGregor's Pies in Wanaka and KB's bakeries in Christchurch. His family lives in Wanaka and he will be travelling between his businesses.

He bought May's in December from Wendy and Phillip Smith. Mrs Smith is the granddaughter of Alex May, who came from Scotland and set up the business in 1914.

From his Scottish home of Peterhead he brought the famous May's Pies recipe that uses mutton instead of beef, and a boiled pastry that isn't flaky.

- © Fairfax NZ News

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