Gateshead factory closure is putting 430 jobs are risk

Orchard House Foods has announced to close their Gateshead factory and will relocate to Corby, Northamptonshire. Moreover, the move will put more than 430 jobs are risk as the company wants to shift by November end.

Orchard House Food is relocating to Corby

Orchard House Foods is a major fruits and juice company supplies to Marks & Spencer, Morrisons and Pret A Manger. They make prepared and packaged fruit, fruit drinks, fruit jellies, fresh fruit yogurts, compotes and granolas. Surprisingly, their announcement came just 18 months after a private equity firm bought the juice company for £25million. Furthermore, Orchard House Foods blamed rising costs and a shortage of staff for its decision to shut its site in Gateshead. The company stated that they have started the consultation with the affected employees. However, they have pledged to create a significant number of jobs with support for colleagues from Gateshead willing to relocate.

CEO’s stance

“Despite making significant investments in our Gateshead facility over a considerable period in an effort to turn around its financial performance, it is unfortunately still making losses that make it unsustainable over the long term. Like many other businesses across the UK, we have been suffering from a series of economic and business challenges. They include rising energy, raw material, transport and labor costs. There has also been a shortage of available staff to work at our Gateshead site.” Chief executive Steve Corby said in his statement.

Employment support for employees willing to relocate

The relocation of the Gateshead factory is likely to affect more than 430 jobs. The company is claiming that they went through rigorous consultation prior to taking this decision. Moreover, the company is expecting to create a significant number of new jobs in East Midlands. Therefore, the Orchard House Foods intends to support the employees who are willing to relocate to Northamptionshire. The probable support includes finding alternative employment in the local area.

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