MBL to exit digital media firm

MBL Group, the CD and DVD distirbutor which recently lost two major contracts to Morrisons, is to dispose of its stake in Rotherham-based digital media company U-Explore.

MBL is understood to have paid £2m for the stake in the careers information and advice provider less than 12 months ago.

The company said it has entered into discussions with the other shareholders of U-Explore in respect of the business acquiring its 15% shareholding.

In the year to last March, around 78% of Leyland-based MBL’s turnover related to sales to Morrisons.

MBL said last week the notification of the termination in September is a “significant disappointment” for the group, which has had a 14 year relationship with the supermarket.

The board of MBL had been in negotiations with Morrisons for several months regarding a future commercial relationship but also failed to secure a third party logistics service tender.

MBL said in a statement last week: “The announcement will necessitate a significant downsizing of our operations and with regret the resultant loss of employment for many of our employees.”