Adelie Foods is planning to close down its sandwich and food-to-go production site in Kilmarnock.
The business, which earlier this year reported a £30m loss, is set to move production to its sites in Wembley and Southall. The move will affect around 180 jobs at Kilmarnock, which makes a range of sandwiches, hot food and snacks, including the Urban Eat lines.
A small number of roles at Adelie’s Munro Place distribution centre will be put at risk by the proposal, with some roles moving to other parts of the business.
Adelie said the closure plans followed two years of operational investments that have improved national distribution efficiencies and value.
Eighteen months ago, the business said investment had freed up capacity at Kilmarnock, resulting in the closure of Adelie’s Middlesbrough factory. The company incurred more than £15m in one-off exceptional costs when it rationalised the operations, contributing to the business making an overall loss before tax of £28.8m in the 18 months to 30 September 2017.
In a statement about the Kilmarnock closure, Adelie CEO Martin Johnson said: “We have reviewed our factory estate to ensure that it is the right size and profile for our future needs, taking into account the nature of our sales growth and the efficiency that has been delivered operationally.”
Johnson added that investment in higher-capacity vehicles and new systems and depots meant the business could now distribute nationally from its factories in Wembley, Southall and Milton Keynes, and from its distribution centre in Kilmarnock.
“Our vision, to be the preferred choice for customers and consumers in food to go, is underpinned by our strategy to have the most cost-effective and capable manufacturing and distribution infrastructure,” said Johnson.
Consultation with employees at Kilmarnock and Munro Place will take place until early February, after which a closure date will be decided.