Gousto to close UK warehouse putting 290 jobs at risk in ‘difficult proposal’

Meal kit brand Gousto has announced plans to shut its Clay Lake warehouse in Lincolnshire, putting around 290 jobs at risk as the company moves all production to its Warrington

Meal kit company Gousto has announced plans to shut down one of its production warehouses, placing 290 jobs in jeopardy. The firm stated it must operate more effectively in a cut-throat food sector while maintaining rock-bottom prices for customers.

The proposals centre on consolidating manufacturing into a single facility and shuttering the Clay Lake site in Lincolnshire. This would mean all production shifts to its Warrington base in Cheshire, where Gousto boxes are assembled and sent out.

Gousto creates and delivers subscription food boxes for home cooking, competing with rivals such as Hello Fresh and Mindful Chef in the marketplace. The business revealed it has pumped significant investment into its Warrington warehouse and embraced cutting-edge technology including automation, backing efforts to provide the widest recipe selection and boost order personalisation for customers.

It handles the overwhelming majority of orders and employs around 600 workers. The company also stated that operating two warehouses has become inefficient and is causing unnecessary duplication.

Gousto emphasised it is concentrating on supporting the roughly 290 employees who face redundancy should the proposals proceed.

Timo Boldt, Gousto’s founder and chief executive, said: “This is an incredibly difficult proposal given the impact on our colleagues in Clay Lake, who have contributed enormously to Gousto’s journey over a number of years.

“In a highly competitive food market, it is however essential that we operate as efficiently as possible so that we can continue to invest in our proposition and keep prices as low as possible for customers.

“Our focus now is on supporting people through this process with care, respect and practical help.”

The news comes after a city hotel and restaurant have closed down suddenly. The Cube Hotel and Marco Pierre White Steakhouse in Birmingham city centre have shut down ‘with immediate effect’, according to a notice posted to customers on June 23.

A sign displayed outside the hotel and rooftop restaurant – which have operated at The Cube for 15 years – appeared to confirm the abrupt closure of both venues. It read: “We regret to inform you that, with immediate effect, The Cube Hotel and Marco Pierre White Steakhouse Bar and Grill Birmingham have ceased trading and are now closed.

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