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Driver shortages have contributed to the collapse of the £ 167m food distribution business, endangering more than 400 jobs

The driver shortage has contributed to the collapse of the £ 167m food distribution business, endangering the employment of more than 400 people.

The PwC administrator has been called in to take over EVCL Chill Ltd and its affiliates EVCL One Limited, EVCL Two Limited and EVCL Three Limited.

They said about 1,092 staff were affected and 658 were transferred to major customers.

Discussions with workers whose roles have not been transferred were scheduled to begin today.

Even as Shortage of “acute” drivers, The loss of some important contracts has also been blamed.

“The rest of the company’s workers are expected to be redundant,” said the Unite union, which has more than 500 members.

The union has accused corporate venture capitalist Emage Best of failing to invest.

The administration will not affect the wider EV Cargo Group, which continues to trade as before.

The head office is Alfreton, Derbyshire, EVCL Chill operates primarily in chilled food logistics and storage, providing products to retail customers such as Asda and Sainsbury’s and suppliers to the UK food retail market.

There are warehouses and warehouses in locations such as Daventry, Alfreton, Rochdale, Crick, Bristol and Penrith.

Helen Wheeler-Jones, Eddie Williams, Matthew Hammond of PwCAppointed as co-administrator, the project states that it has 374 trucks and 432 trailers and has a warehouse capacity of over 20,000 pallets.

They say: “By December 2020, the business had sales of over £ 167m and generated cash.

“But EVCL Chill suffered many major customer losses and a serious driver shortage in 2021 and created significant liquidity challenges given its fixed cost base.

“Many sales options were considered, but interest was limited and management made the difficult decision to enter the administration.

“Unfortunately, there are some roles that have not been transferred.”

They said the transferred 658 roles, along with many services, were transferred to key customers under contractual arrangements.

Eddie Williams said: “This is a very difficult situation and has accelerated intense discussions with key stakeholders to reach this position.

“As companies move from survival mode to recovery, the financial environment remains very volatile.

“We are pleased to continue with at least 658 roles in sectors that already face many challenges and challenges in terms of inventory, personnel, and broader supply chains.

“Many stakeholders in EVCL Chill have some important continuity and stability.

“We will continue to fully support all affected staff during this difficult time.”

Helen Wheeler Jones said: “We will also continue to work closely with our customers on the key IT and shipping requirements they need to fulfill their orders, along with other preferred stakeholders, including HMRC.”

The union said it would help affected members after the collapse of the business.

“Unite, which has more than 500 members in the company, wants to ensure that workers directly employed under the Asda-Sainsbury contract are TUPE-transfer of business. [Protection of Employees] – To work directly in these supermarkets.

“It is hoped that workers who are not covered by TUPE will be found within Asda’s business.

“The rest of the workers in the company are expected to be redundant.

“Unite provided support to help affected workers find new jobs, and also on behalf of members because the company did not notify and consult them before making them redundant. I aim to win the protection award. “

He said it would help workers claim unpaid wages, including a 10% salary increase that they said they had recently negotiated.

Driver shortages have contributed to the collapse of the £ 167m food distribution business, endangering more than 400 jobs

Source link Driver shortages have contributed to the collapse of the £ 167m food distribution business, endangering more than 400 jobs

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