Major employer set for job cuts?
Food firm blames impact of virus
CASTELL Howell Foods Ltd, the Carmarthenshire-based food wholesaler, has warned of possible job cuts due to the effects of the coronavirus pandemic.
CASTELL Howell Foods Ltd, the Carmarthenshirebased food wholesaler, has warned of possible job cuts due to the effects of the coronavirus pandemic.
The firm, which has its headquarters in Cross Hands and a cash and carry in Carmarthen, has confirmed it has entered into a period of consultation with its 700 employees regarding potential job cuts due to the impact of the pandemic on the food and hospitality sector.
Bosses said the severity of any job cuts is not yet known.
The company, which is one of Wales’ largest food firms, said sales are down by 65%, and it is unlikely trade will recover fully until well into 2021.
In a statement it said: “Major events have been cancelled, and it is likely that our core customers such as schools, pubs, restaurants, hotels, cafés and workplace catering will not open to full capacity for several months.
“As the UK Government’s furlough scheme is due to end in October, we regrettably need to start the consultation process with our staff so that further financial losses are minimised once Government support ends.
“We are unable to confirm how many jobs could be lost, as this depends on the extent to which our customers are able to resume trading while operating within social distancing rules.
“Cuts are expected to come from a combination of voluntary and compulsory redundancies and reduced hours.
“This safety action will ensure that we are able to continue to provide our customers with a level of service to support them as they begin to reopen their businesses.
“We hope that during the consultation period, more customers will have the opportunity to resume trading and that a clear plan for the sector will become apparent.
“This will help mitigate the total number of job losses and allow businesses to plan with a degree of certainty.”
Castell Howell said it must take the steps to protect the medium to long term viability of its business and ensure its role in the supply chain to key customers which include the NHS and local authorities is not compromised.
Castell Howell managing director Brian Jones said: “This has been a very difficult decision, and it saddens me personally as I know the concern that this consultation period will cause our employees.
“We will do our utmost to support them during this period. I sincerely hope that any jobs lost in the short term will eventually be re-created as and when the hospitality sector recovers.
“After more than 30 years of building the business and trading successfully, this was certainly not something I thought we’d ever have to contemplate.
“I’d like to reassure everyone associated with our company, including our hugely loyal customer base, that taking these protective measures will ensure that Castell Howell can continue to provide the service levels for which we are renowned.”
In April the firm said it lost 80% of its customers in one fell swoop because of the pandemic.
At the time it saw a 70% drop in revenue and had furloughed around 55% of its workforce.
However it started redoubling its efforts to feed NHS Wales workers, schoolchildren and the vulnerable through the ongoing crisis.
Castell Howell was established in 1988 on a farm in Trevaughan outside Carmarthen and is now one of the largest private sector employers in West Wales.