Manchester Evening News reports that EVCL Chill Ltd is set to cut 434 jobs after going bankrupt.
The company had a number of major contracts for supermarkets, including Asda and Sainsbury’s, and employs around 1,000 workers in warehousing and truck driving roles.
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The PwC administrator says the collapse of the company is due to the loss of “key customers” and severe shortages of drivers.
The situation puts jobs at risk at its warehouses and depots at Daventry and Crick in Northamptonshire, Alfreton in Derbyshire, Rochdale in Greater Manchester, Bristol and Penrith in Cumbria.
No specific figures have yet been released as to how many jobs could be cut at any of the sites.
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It has been reported that until December 2020 the company’s turnover exceeded £ 167million.
But PwC said since then there had been “significant liquidity issues”.
A statement from the administrator said: “A number of put options were explored but generated limited interest and management made the difficult decision to go into administration. “
Co-administrator Eddie Williams said: “It has been a very difficult situation and involved intense discussions with key stakeholders on an accelerated basis to get to this position. As businesses shift from survival mode to recovery, the financial climate is still very volatile.
“I am delighted that at least 658 positions will continue in an industry that already faces many difficulties and challenges regarding inventory, personnel and the broader supply chain. Vital continuity and stability has been provided for a number of EVCL Chill stakeholders.
“We will continue to fully support all affected staff during this difficult time. “
Helen Wheeler Jones, Co-Administrator, said: “We will also continue to liaise closely with customers on key IT and transportation requirements needed to fulfill orders, alongside other priority stakeholders including HMRC. “
The workers are represented by Union Unite.
National Officer Matt Draper said: “The collapse of EVCL Chill at a time of huge demand for truck drivers, in particular, further calls into question the role and involvement of venture capitalists in the British industry.
“There is something fundamentally wrong with a system that allows wealthy business owners to avoid paying for its collapse when the taxpayer has to pick up the pieces.
“The workers at EVCL Chill have lost their jobs without warning, through no fault of their own, and Unite will help its members in any way possible to cope with this difficult time.
“It is likely that EVCL Chill workers employed on its supermarket contracts will be transferred directly to this employer. The rest of the employees will have a much more uncertain future, but it is a very difficult and stressful time for all workers at EVCL Chill. . “
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