18/06/2008

Jobs Lost As Musgrave Tightens Belt

Shock job losses are to follow a review of one of the most successful and longest established grocery wholesale operations in the Province,

It is expected that 20 jobs are to be axed at the J&J Haslett business and the Holmes Wholesale business, both now owned by former rival, Musgrave Retail Partners NI.

However, the redundancies from the cash and carry and general side of the business will be spread across three depots which are closing, with the loss of 11 jobs in Coleraine, seven in Cookstown and five in Newtownards.

Mid-Ulster is being hit with the closure of the Cookstown operation, which is transferring its trade to Lurgan.

Musgrave purchased the J&J Haslett Business last September. There are two brands operating under J&J Haslett: retail brand MACE and wholesale brand Holmes.

Musgrave has been carrying out a strategic review of the entire J&J Haslett business and the Holmes wholesale business was part of that review.

Neil Donnelly, General Manager of Holmes Wholesale said: "The new Holmes operating structure will provide us with a solid platform for future growth and provide a focus for investment in the business.

"This is the best position for Holmes going forward. It will strengthen the business and ensure its competitiveness, sustainability and viability for the long-term."

He said the review outcomes had been communicated to the entire workforce last month and continued: "The company has been looking at ways to improve efficiencies across the Holmes group of cash and carry depots in light of a shrinking independent market and more and more customers making the move to delivered trade as opposed to traditional cash and carry," he said.

"To remain at the forefront of wholesaling, Holmes is consolidating its operations, creating four larger and more focused business units to service the Northern Ireland marketplace.

"As a result, the operations of the Coleraine, Newtownards and Cookstown depots, will be run down, transferring their business to our Ballymena, Hillview, (Belfast) and Lurgan depots respectively," he said.

"Subject to consultation with the union, our proposal is that the delivered trade side of the business – and associated employees will transfer to the receiving depots."

Then, after consolidation, Holmes will be separated from J&J Haslett and will be integrated fully with Musgrave Wholesale Partners.

In July 2007 Musgrave Group bought Northern Ireland food wholesaler J&J Haslett, which supplies 200 Mace and 70 XL Stop and Shop stores and operates seven Holmes cash and carry outlets.

The business in the year to 31 December 2006 had a turnover of £192m (€282m), employing 360 people at eight locations across Northern Ireland.

At the time, Musgrave Group Chief Executive Officer Chris Martin said: "J&J Haslett is an excellent business with a strong position in the dynamic Northern Ireland convenience market."

The transaction was subject to regulatory approval in the UK and in the Republic of Ireland, which - as anticipated - was granted in September that year.

(BMcC/KMcA)

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