900 jobs at risk as HelloFresh proposes site closure

Recipe box delivery giant HelloFresh has revealed it could close its Nuneaton facility, placing 900 jobs at risk.

The 237,000 sq ft site on St George’s Way became HelloFresh’s second UK production facility and third largest in Europe when it opened in 2020.

HelloFresh says the move to a two-site model will help the company reduce waste and emissions while offering better service and more personalisation.

If the proposal is accepted, the online meal kit delivery company said it will “prioritise redeployment opportunities within the business” at sites in Derby and Banbury for a large majority of the 900 employees.

It will also look to offer incentives to employees who stay with the firm until the site eventually closes in mid-2025.

A consultation process has been launched with staff, but “the future outcome is not known at this stage”.

HelloFresh recently came under fire for dismissing staff at the Nuneaton warehouse, “who had spoken out against the dire working conditions”, claimed a trade union.

Community Union said that whilst HelloFresh markets itself as “a consumer-friendly, forward-looking business”, it is “a company with an antiquated and draconian approach to its workforce” after preventing workers from taking toilet breaks.

But HelloFresh vehemently denied these claims, “particularly those concerning break policies and termination procedures”.

The Berlin-headquartered business said that a number of team members refused to work during their shift earlier this year, which led to an investigation that found “multiple serious breaches of employment terms” resulting in dismissals.

Regarding the closure, a HelloFresh spokesperson told TheBusinessDesk.com: “We have made the difficult decision to propose the closure of our distribution centre in Nuneaton, subject to consultation. After reviewing all of our options, we have decided that consolidating our operations and leveraging more of the technologically advanced parts of our network will enable us to offer the best product to our customers while reducing emissions and waste.

“We know how unsettling this can be for our employees, who we are supporting throughout the consultation process. If the proposal is accepted, we will prioritise redeployment opportunities within the business and look to offer incentives to employees who stay with us until the site eventually closes.

“The proposal is for the site to remain operational until at least mid-2025, so everyone has been notified significantly earlier than their contractual notice periods. The planned closure of the site is no reflection on the performance of the local team, and we are grateful for their hard work and commitment.”

Community’s Regional Secretary for the Midlands Gavin Miller said: “It has been brought to our attention that HelloFresh intends to close its Nuneaton distribution centre next May. This is dreadful news for everyone who works on site, this workforce deserves better and Community will be challenging the company to prove the merits of their proposal and demonstrate that they have considered all viable alternatives.

“Community will be representing and supporting our members at HelloFresh through this difficult time – they will receive the full backing of their union.”