Loss of a contract has seen Tulip announce the closure of its Freshway site

Loss of a contract has seen Tulip announce the closure of its Freshway site

Pork processor Tulip Ltd announced it is to close its sandwich facility Freshway Foods in a move which will see 208 jobs axed.

The firm issued a statement yesterday (21 March) attributing the decision to losing a contract with The Foodservice Centre Ltd which would result in "a 50% reduction in the site's turnover, making it economically unsustainable to maintain operations".

A 45-day consultation period began yesterday.

Kirsty Wilkins, group HR director for Tulip Ltd, said: "It is with great regret that Tulip Ltd announces formal consultation over a proposal to close Freshway Chilled Foods following the loss of core business with FSC after 18 successful years.

"Whilst we continue to explore ways in which we may be able to secure a future for the business we cannot see a viable alternative to closure at this point in time.

"A number of options are being discussed as part of the consultation process, including the possible redeployment of employees into alternative permanent roles at other Tulip sites. A review is also being carried out on whether spare capacity across various Tulip manufacturing sites may be utilised for the remaining business at the Freshway site."

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Tulip Ltd has today announced its Freshway Chilled Foods business is entering formal consultation over the future of its production site in Wolverhampton.

 

Proposals to close the site follow an unsuccessful tender to retain business supplying sandwiches and associated products to The Foodservice Centre Ltd (FSC) after 18 successful years. The site employs 208 full time people and supply to FSC is scheduled to end in June. 

 

A 45-day consultation period begins today between Freshway, the employee works council and union representatives over potential redundancies which may arise from the proposed closure of the site. 

 

Kirsty Wilkins, Group HR Director for Tulip Ltd, said: “It is with great regret that Tulip Ltd announces formal consultation over a proposal to close Freshway Chilled Foods following the loss of core business with FSC after 18 successful years. The loss of the FSC business will result in a 50% reduction in the site’s turnover, making it economically unsustainable to maintain operations.  Whilst we continue to explore ways in which we may be able to secure a future for the business we cannot see a viable alternative to closure at this point in time.

 

“A number of options are being discussed as part of the consultation process, including the possible redeployment of employees into alternative permanent roles at other Tulip sites. A review is also being carried out on whether spare capacity across various Tulip manufacturing sites may be utilised for the remaining business at the Freshway site.”

Original source: Tulip Ltd