Freshway Chilled Foods in the UK will shut after it failed to win a new major contract.
The company is owned by Warwick-based food manufacturer Tulip which made the decision to shut it down after Freshway failed to win a new contract to keep supplying sandwiches to The Foodservice Centre.
A total of 208 people work full time at the Freshway's site on Stafford Road, Wolverhampton and will continue to supply FSC until the contract ends in June. It had supplied the FSC for just over 18 years.
In a statement released by the company, it said that the loss of the contract would reduce turnover by 50%, thus making it "economically unsustainable".
"We cannot see a viable alternative to closure at this point in time," Tulip's head of human resources Kirsty Wilkins said.
"A number of options are being discussed as part of the consultation process, including the possible redeployment of employees into alternative permanent roles at other Tulip sites. A review is also being carried out on whether spare capacity across various Tulip manufacturing sites may be utilised for the remaining business at the Freshway site," she added.
© 2014 - European Supermarket Magazine by Enda Dowling
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