Solus to close Rackheath depot in Norwich, announce administrators
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The administrators acting on behalf of Solus Garden & Leisure have announced that the company's Rackheath depot in Norwich is to close next month and that 19 jobs could be affected.
Solus will continue to serve garden centres in the region, added the administrators, but this will now be done from the Midlands (Hunnington) in future.
The full statement reads:
As previously reported, prior to the administration, Solus Garden & Leisure Limited (“Solus” or “the Company”) suffered a drop in turnover due to difficult trading conditions as well as a cessation of a distribution agreement with its major supplier. The business' cost structure was no longer in line with the reduced sales volume and significant losses were being incurred.
On 21 May 2014, a week after Robert Hunt and Tony Barrell were appointed administrators of Solus, PwC regrettably had to make 91 staff redundant following the closure of the Company’s Tipton and West Bromwich warehouses. On 3 June 2014, PwC subsequently announced the closure of the Edinburgh Regional Distribution Centre (RDC), which is scheduled to be complete by the end of June 2014. PwC can now confirm that having further reviewed the ongoing requirements of the business, regrettably the Norwich RDC will close during July 2014. Solus will continue to seek to serve customers in the region but this will be done from the Midlands in future, and customers affected by this change are being contacted by the Company to confirm ongoing arrangements. As the Edinburgh and Norwich RDCs are closing, further redundancies are likely. The administrators are consulting and working closely with employees affected by the closure to ensure they receive the support they need during this time. There are currently 14 employees at the Edinburgh RDC and 19 employees at the Norwich RDC. All staff at the Company have been briefed and the administrators will work closely with them over the coming weeks as the business continues to operate as normal. Tony Barrell, joint administrator and director, PwC said: “We would like to thank the employees for the continued support they’ve provided to Company during this difficult period and we will do everything we can to support them in the forthcoming weeks. Their contribution has helped us to get the business into as normal state as is possible.
"As a result, the Company is trading well, with a good level of sales due to the support of suppliers and customers who are continuing to order and pay for product.”
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