Hundreds of jobs at a major food factory in Derby have been saved after the owners reversed a decision to close the facility.

Bernard Matthews Foods said in August it was shutting its processing facility on Shaftesbury Street South by the end of 2026, with about 600 jobs affected.

However, on Thursday, 2 Sisters Food Group, whose founder bought Bernard Matthews in 2016, said a "new anchor customer" had been found, with about 400 jobs now secure and "100 to 150 roles remaining at risk of redundancy".

Baggy Shanker, MP for Derby South, said the development was "a huge relief for hundreds of workers and their families, and positive news for Derby".

In its statement, 2 Sisters Food Group said the company "continued to explore all viable options to secure a sustainable future for the site", with "a detailed review and constructive engagement with employee and union representatives" leading to the site's continuation.

"This is very positive news for the Derby community and for the hundreds of colleagues whose jobs will now be saved," a spokesman said.

"We are pleased to confirm that the Derby site will remain operational, and securing this new customer provides a stronger foundation from which to build a sustainable future."

Shanker said 400 jobs remaining at the site was "an important outcome", adding he was "working with the Department for Work and Pensions to identify employment and training opportunities" for those at risk of redundancy.

He added: "It is welcome that discussions with the company continued even after the original closure decision was made, and that those talks have now resulted in a way forward for the site."