Produce Investments, the Borders-based potato supplier, today confirmed that its packing operation in Kent is to close next month.
The firm said last month that it had started a consultation with staff on the planned closure, sparked by a three-year detail with a “core retail customer” at a fixed margin and with lower overall volumes.
Berwickshire-based Produce Investments, which supplies the likes of Asda, Marks & Spencer, Sainsbury’s, Tesco and Waitrose, said today: “The 45-day consultation period with employees has now ended.
“Following this consultation, the company can now confirm that packing operations will cease at the site in early December, with volumes transferring to their sites in the Scottish Borders and Cambridgeshire.”
Produce Investments warned investors last month that it faces a hit of up to £1.5 million following a contamination scare that prompted a product recall.
The Aim-quoted group’s Swancote Farms arm said in May that there was a possible issue with traces of metal being found in one of its products, sparking a recall of a number of potato salad and ready meal ranges.