Major British food company to close warehouse and put 290 jobs at risk

Meal kit company Gousto has unveiled plans to close its Clay Lake production warehouse in Lincolnshire, putting around 290 jobs at risk as it seeks to consolidate manufacturing at a single site.

The recipe box provider has launched a formal consultation on proposals to transfer all box preparation and dispatch operations to its Warrington facility in Cheshire.

Gousto said moving to a single-site operating model is necessary to improve efficiency in a highly competitive food market while continuing to offer customers affordable prices.

The company said maintaining two production sites has become increasingly inefficient and has led to duplicated processes across its network.

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Significant investment has been directed towards the Warrington site in recent years, with Gousto developing what it describes as an advanced fulfilment hub incorporating automation technology.

The 300,000 sq ft Cheshire facility currently employs around 600 people and processes the majority of customer orders.

According to Gousto, investment in the site has also enabled the business to expand recipe choice and improve the personalisation of deliveries.

The company operates in the subscription meal box market alongside competitors including HelloFresh and Mindful Chef, supplying customers with pre-portioned ingredients and recipe cards to prepare meals at home.

Timo Boldt, Gousto's founder and chief executive, said: "This is an incredibly difficult proposal given the impact on our colleagues in Clay Lake, who have contributed enormously to Gousto's journey over a number of years.

"In a highly competitive food market, it is however essential that we operate as efficiently as possible so that we can continue to invest in our proposition and keep prices as low as possible for customers."

He said substantial investment in the Warrington facility had created a fulfilment centre with the technology, scale and capacity needed to support future growth.

Mr Boldt said the changes reflected the company's operational evolution but acknowledged that this did not lessen the impact on employees affected by the proposals.

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He said: "Our priority now is to support our colleagues through this process with care, respect and practical help."

The consultation represents a significant change for Gousto, which has built its business around delivering subscription food boxes directly to households across the UK.

The company said investment in Warrington has transformed its network operations and provides an opportunity to streamline its manufacturing footprint as it looks to support future growth.

Gousto currently supplies customers with ingredients and recipes designed to allow households to prepare meals at home without needing to shop for individual items.

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