DUNDEE'S economy took another blow yesterday with the announcement

that Sunblest Bakery will close making 94 workers redundant.

The bakery, owned by Allied Bakeries, has operated at its Lytton

Street site, in the west end of Dundee, for over 70 years.

Mr Pat Lally, manager of Northern Region Allied Bakeries, met the

workforce yesterday to break the bad news that production would be

transferred to the company's bakeries in Aberdeen, Edinburgh and

Glasgow. A small depot for 10 vans is to be maintained at the site.

Mr Lally said that the decision to close Dundee had been ''very

distressing''.

He added: ''The Dundee site is the smallest of our operations in

Scotland and the efforts of all of its loyal and valued workforce have,

until now, enabled it to overcome the disadvantages of its size in an

industry which continues to be as competitive as any in food

manufacturing.''