Asda has announced that it will take a collection service provided by its logistics partner EVCL Chill and absorb 290 employees associated with the business.
The logistics operator entered administration last weekend, putting hundreds of jobs at risk, according to media reports.
EVCL Chill works with Asda to deliver its ‘Asda Collect’ service, which transports chilled products from suppliers to two sites in Daventry and Rochdale before distribution in stores across the retailer's network.
The Daventry site is operated by EVCL Chill and the Rochdale service is located at an Asda depot, operated by logistics partner, Wincanton.
Mark Simpson, chief supply chain officer for the retailer, said, "Our first priority has been to maintain the flow of supply into our stores and protect as many jobs as possible – and I am pleased to be able to give the firm reassurance that Asda Collect will continue to operate as normal for our suppliers and all the colleagues dedicated to this service at EVCL will transfer to Asda and Wincanton.
"In addition, we will look to offer new opportunities to as many EVCL Chill colleagues as we can at our Lutterworth site. Those working in our industry have had to demonstrate huge resilience and agility over the last 18 months in very difficult circumstances and I’d like to thank everyone in our distribution network for their continued efforts."
Transfer Of Operations
Asda is transferring its ‘Asda Collect’ operation from EVCL Chill’s Daventry operation to its Lutterworth chilled depot and 171 employees dedicated to the service will transfer to the site with immediate effect.
The chain is also opening up vacancies at its Lutterworth site for people at EVCL Chill impacted by the closure of the Daventry site and are not eligible for TUPE, but may wish to join the UK retailer's team.
The retailer will also take in the Asda Collect operation at Rochdale, and transfer 122 people dedicated to the service to operating partner W
incanton, effective 24 September 2021.
The group has engaged employees and their representatives at the two sites and will continue to do so over the coming days.
James Wroath, CEO of Wincanton said; "Wincanton is proud to support our valued long-term customer, Asda, in responding quickly to the latest challenge in our food supply chains. This important extension to our relationship with Asda will ensure food manufacturers get their products to Asda stores and customers across the UK and, importantly, ensure continued employment for colleagues in the Asda supply chain who we look forward to welcoming to Wincanton."
© 2021 European Supermarket Magazine. Article by Conor Farrelly. For more Retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.