WiggleCRC has suggested that, from next summer, as many as 300 jobs could be lost as the merged industry giant consolidates its warehousing to a central Wolverhampton location.
152 jobs, as well as a further 161 agency roles are said to be at risk across Chain Reaction’s Ballyclare, Doagh and Carrickfergus facilities.
“For WiggleCRC to retain its position and remain competitive in the UK as well as increasingly global markets, we have concluded that this can be best achieved by concentrating the majority of our distribution through our warehouse facility in Wolverhampton,” said a statement issued by the firm.
“This necessary step, will require the relocation of significant warehouse activities currently in Doagh, Carrickfergus and Ballyclare. As part of this proposal, bikes and frames, including bike assembly handling activities and our wheel build operation would remain in Ballyclare.”
Another thing confirmed in the statement was that the two online portals and brand names would remain separate.
“Should the proposal go ahead, we would expect the relocation of stock and activities to commence in late summer 2017,” the company added.
“We hope this extended period of time will help to smooth the transition for those affected. We recognise that these are uncertain times for affected employees and can confirm they will be treated fairly and in line with our values.
“We are fully committed to minimising the impact of these proposals and providing all the necessary support to affected employees in any way we can during and after this process.”
In related news, Wiggle’s owners have recently written down the value of its asset, dropping £34.8 million of its valuation of the business.
The firm’s latest figures show a revenue growth of 7.9%, with volumes ahead by 16%.
Revenue for the 48-week period ending January 3rd 2016 was £178.1 million, compared to the prior 52-week period’s earnings of £178.8 ended February 1st 2015.
The accounts also reveal that the online giant’s UK business is in the ascendancy, with £100,852,000 in turnover generated in the 48 weeks ended January 3rd, 2016, up from £96,778,000 in the prior year’s accounts. Elsewhere the business posted a small decline in trade in both Europe and rest of world.