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Retailers' collapse may hurt DHL and Wincanton

03 December 2008

More than 500 jobs spread between DHL Exel Supply Chain and Wincanton may be affected after retail giants MFI and Woolworths collapsed into administration on the same day last week. Logistics firm Wincanton confirms that it has started reduncancy consultations with 188 drivers employed on the Woolworths contract.

The drivers work at two  main sites in Castleton, near Rochdale, Lancs and Swindon, Wilts plus associated outbases.

Wincanton says that while it hopes to redeploy as many drivers as possible across its network, it adds: "Sadly we anticipate that there are likely to be redundancies across the operation and, subject to full consultation with the affected employees and their trade unions, this may result in a redundancy situation for some or all of our employees at the affected sites."

DHL says its Thorne, South Yorks distribution centre, which employs 350 staff, may be affected by MFI's administration. DHL only began operating from the Thorne DC in December last year on a five-year contract with the collapsed retailer. It had invested around half of the £16m spent on the site's warehouse management systems.


Dominic Perry
Email at dominic.perry@rbi.co.uk
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