Stobart Group insists its decision to close a chilled distribution centre in Scunthorpe has nothing to do with the economic downturn and is based on making the business more cost-effective.
The operation, acquired in last year's buy-up of Innovate's chilled operations, will close when its lease expires at the end of April, resulting in around 40 redundancies. The work at the site for multi-national food firm Nestlé will transfer to its Bardon, Leicestershire depot.
The news comes as the group announces a 10-year £110m warehousing contract with Nestlé from Bardon.
A spokeswoman says Stobart has safeguarded 1,000 jobs out of the 1,300 that transferred over in the Innovate sale. She says the decision "is in no way a reflection on the employees in Scunthorpe, who have given a first-class service over many years. As a result of the transfer of operations, a number of jobs will be created in Bardon."
However, she adds: "If you are on low income, you are not going to travel one and a half hours to work. We are also looking for opportunities within the group." This is the third ex-Innovate site to close under Stobart following the recent cuts at Larkhall, Lanarkshire and Worksop, Notts.