The Co-operative Group has started talks with unions and staff over the possible closure of Alldays' Dundee distribution centre as plans to service Alldays' stores from its own depots take shape.
As the first Alldays store in Scotland was converted to the Welcome fascia in Glasgow, the society began talks about a phased redundancy programme at the Dundee depot, which serves 121 Alldays branches in Scotland.
Substantial savings could be made by supplying these stores from existing Co-operative Group depots in Cumbernauld and Harthill, said a spokeswoman. "We regret these potential redundancies, but it is inevitable in any acquisition that there will be duplication in some functions." Cost savings would be pumped back into the Alldays stores to "enhance the quality of service for customers", she added.
The site, which employs 85 staff, should close by October. Where possible, employees will be offered opportunities at Cumbernauld and Harthill.
Alldays' second distribution centre in Eastleigh, Hampshire, will be integrated into the Co-op Group's own network, safeguarding 167 jobs.
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