Hundreds of jobs could go at food haulage firm
A CHILLED food haulage firm with a site in Rochdale is on the verge of shedding 434 jobs after going into administration.
EVCL Chill had a number of major contracts for supermarkets including Asda and Sainsbury’s, and employs about 1,000 workers in warehousing and HGV driving roles.
The failure of the firm is down to the loss of ‘key customers’ and serious driver shortages, said administrator PWC.
It leaves 434 jobs at risk across its warehouses and depots, including Rochdale.
No specific numbers have been released with regard to how many jobs could go at any of their handful of sites.
Up to December 2020, turnover at the business exceeded £167 million, but since then there have been ‘significant liquidity challenges’, said PWC.
“A number of sale options were explored but generated limited interest, and management took the difficult decision to enter administration,” said a statement from the administrator.
Joint administrator Eddie Williams said: “This has been a very difficult situation and involved intense discussions with key stakeholders on an accelerated basis to get to this position. As businesses move from survival mode to recovery, the financial climate is still very volatile.
“I am pleased that at least 658 roles will continue in a sector that is already facing many difficulties and challenges around inventory, personnel and the wider supply chain. Some vital continuity and stability has been ensured for a number of EVCL Chill’s stakeholders.
“We will continue to fully support all affected staff members during this difficult time.”
Helen Wheeler Jones, joint administrator, said: “We will also continue to liaise closely with customers on the key IT and transport requirements needed for them to fulfil orders, alongside other priority stakeholders including HMRC.”
The workers are represented by the union Unite.
National officer Matt Draper said: “The collapse of EVCL Chill at a time when there is huge demand for lorry drivers in particular, further calls into question the role and involvement of venture capitalists in UK industry.
“There is something fundamentally wrong in a system which allows the wealthy owners of a company to avoid paying for its collapse while the taxpayer has to pick up the pieces.
“EVCL Chill workers have lost their jobs without warning, through no fault of their own, and Unite will be assisting its members in every way possible in coping at this difficult time.
“It is likely that the EVCL Chill workers employed on its supermarket contracts will be transferred directly to that employer.
‘‘The rest of the employees will have a far more uncertain future, but this is a highly distressing and stressful time for all workers at EVCL Chill.”