Stobart Group is to discontinue its chilled operations “as a stand alone unit” insisting that the “change will not affect Stobart's national network solution for customers”.
In an interim management statement today (17 January), Stobart said the Eddie Stobart transport and distribution division continued to perform in an uncertain economic environment but its chilled operations remained very challenging.
MT.co.uk understands that discontinuing the chilled operations – primarily the former Innovate Logistics business it acquired out of administration in July 2008 – will see depots in Newark, Lincs and Haywood, Lancs close.
In October 2012 it warned that the former Innovate operations had cost the firm £4.2m in the first half of its financial year, and it was expecting to incur similar costs in the second half.
In the wider transport division Stobart said December trading was comparable to last year “within similar economic circumstances”. However it did warn that in the traditionally quieter months of January and February the division will be focused on cost control to reduce risk in its final quarter of trading – which ends on 28 February.
See MT.co.uk for more on this breaking story later today.
