Hellofresh has revealed plans to close one of its major UK sites in a move which has put 900 jobs at risk.
The recipe box delivery company has said the Nuneaton distribution centre would remain operational until the middle of 2025 if the proposals are approved.
The 237,000 sqft building was Hellofresh’s second site when it opened in 2020.
The move comes after City AM reported that the firm’s UK arm significantly cut its pre-tax loss as its turnover edged closer to the £500m mark during its latest financial year.
However, it was also revealed that Hellofresh had cut the average number of people it employed in the UK fell from 2,159 to 1,842 in the year.
The last time the UK arm of Hellofresh made a pre-tax profit was the £8m it reported in 2020. Since then it has lost almost £50m.
Hellofresh closure ‘no reflection’ on team’s performance
In a statement, Hellofresh said: “We have made the difficult decision to propose the closure of our distribution centre in Nuneaton, subject to consultation.
“After reviewing all of our options, we have decided that consolidating our operations and leveraging more of the technologically advanced parts of our network will enable us to offer the best product to our customers while reducing emissions and waste.
“We know how unsettling this can be for our employees, who we are supporting throughout the consultation process.
“If the proposal is accepted, we will prioritise redeployment opportunities within the business, and look to offer incentives to employees who stay with us until the site eventually closes.
“The proposal is for the site to remain operational until at least mid-2025, so everyone has been notified significantly earlier than their contractual notice periods.
“The planned closure of the site is no reflection on the performance of the local team, and we are grateful for their hard work and commitment.”
Hellofresh boosted by third quarter sales rise
The announcement was also made as the wider Hellofresh group, which is headquartered in Berlin, posted a revenue of €1.83bn (£1.52bn) for its third quarter, up from the €1.80bn it achieved during the same three months in 2023.
Co-founder and CEO Dominik Richter said: “In meal kits, our focus for the next couple of quarters will be on improving further on an already excellent proposition to our customers, through more meal choice, better value for money and higher service levels.
“We also aim to meaningfully expand free cash flows and profitability for the group, and have taken first decisive steps, such as being more selective in attracting new customers to our meal kit brands and adjusting our production footprint. We see these steps starting to reflect in the numbers.
“The biggest growth driver for the group over the next three years, for both revenues and profits, will be our RTE product category.
“Today, we are already the RTE market leader in the US and have developed the product, technology and food manufacturing capabilities to reach many more people around the world with our RTE products.”
