Jobs under threat as firm plans to close Coventry site

[dutchman]

Plans to close the Coventry base of a famous old company have been revealed, putting scores of jobs at risk.



Buck & Hickman staff were told today that the firm intends to shut its operation at Middlemarch Business Park near Coventry Airport by the end of the summer.

The company, which distributes tools, maintenance and health and safety products, celebrated its 180th birthday in 2010.

Coventry has been the site of the business’ distribution centre since the 1990s, currently employing about 180 people.

A 45-day consultation will now take place with staff.

The firm has 29 branches across the UK, but was recently bought by industrial maintenance company Brammer. The Coventry operation would move to Wolverhampton under the shake-up.

One worker at the Siskin Parkway site told the Telegraph: “I’m very worried about my welfare.

“The atmosphere was terrible, we just want to know what’s going on. I’ve been working here for years, and the factory’s been here for 20 years. Now they’re going to shut the whole thing down.”

In a statement Brammer said: “The company has today entered into a consultation with staff over the proposed consolidation of the business activities carried out at the company’s Coventry distribution centre and its offices to the Wolverhampton distribution centre and Wythenshawe offices.

“It is also proposed that, subject to employee consultation, the company close the Coventry site by the end of the summer.

“The proposed consolidation would enable the company to better utilise the significant spare capacity and highly automated warehouse systems that exist in the Wolverhampton distribution centre, allowing streamlining of the stock holding, supply chain and logistics activities which are currently duplicated at the Coventry site.

“It would also enable the consolidation of all UK finance and administration activities at the Wythenshawe office further improving customer service and operational efficiency.”

[rebbonk]

Company takeovers are always fraught with this type of thing. The new company will try to maximise its profits and recover its outlay as quickly as possible. Rationalisation (in one form or another) is to be expected, and employee numbers are usualy the first target.

Sadly, the new company will be making mistakes, and is likely to regret things in the longer term. In fact, if you look into mergers and take-overs, they very rarely deliver in practice what they looked to deliver on paper. As always though, it is the staff that pay the price.