MBL rethinks distribution centre

MBL GROUP, the Lancashire-based  distributor of home entertainment products, has said that it is reviewing its options over the lease of its proposed new distribution centre in Lower Darwen.

The firm also said that it was entering into talks with fellow shareholders in the UExplore business over a potential sale of its 15% stake.

The announcement follows Tuesday’s news that the firm had lost two contracts with its main customer, Bradford-based supermarket giant Morrisons.

Morrisons had been MBL’s major customer and was responsible for around 78% of the firm’s turnover last year.

The company said today that it was working with Morrisons “to secure a payment plan from Morrisons for the considerable stock MBL holds on behalf of Morrisons”.

“The board will update shareholders on progress in this matter as soon as it is appropriate to do so.”

The company said that it had begun preparing a plan “for the immediate downsizing of the significant number of job losses” expected.

“Discussions with Morrisons and its new supplier continue regarding those employees who will be in scope for TUPE (Transfer of Undertakings (Protection of Employment) Regulations).”

MBL currently employs 400 staff and in the six months to September 30 it achieved a pre-tax profit of £3.2m on sales of £71.1m.