Up to 186 jobs are at risk at Hula Hoops and Skips owner KP Snacks after the UK company firm announced plans to close two sites in Consett and Corby.
The snack maker, owned by Germany’s Intersnack, said plans to streamline its business would see production shifted to other plants.
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“We operate in an increasingly competitive market and need to focus on our cost base in order to develop a sustainable business,” KP Snacks CEO Nick Bunker said.
“Unfortunately, despite plans to grow our Pom-Bear business, our Corby factory is capacity constrained and has been for some time. Now KP Snacks and Intersnack UK have integrated to form a larger UK business, we have the opportunity to expand our Pom-Bear business in the most cost-efficient manner at our larger Teesside site.
“In addition, after many years of working hard to try and grow our Consett volume, and despite the growth of Phileas Fogg, the under-utilisation of the site has created an unsustainable situation.”
The firm is entering a 45-day consultation period with staff at Corby and Consett.
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By GlobalData“These are only proposals at this stage and are subject to the appropriate consultation with our colleagues. No final decisions have yet been made,” Bunker added.
A final decision is likely to be made in the first half of 2015, a spokesperson told just-food.
