3663 First For Foodservice is considering shutting down a depot in Lichfield that employs 220 staff, following the closure of six other sites in the past 12 months.

The foodservice giant said it had decided to reduce the number of its logistics sites as a result of a reduction in volumes caused by the recession.

3663's logistics arm made a loss in the second half of 2008 partly due to fluctuating petrol prices. The company refused to say whether the business was yet back in the black.

It recently lost the contract to supply Burger King to DHL from June 2010, which is one of its biggest sources of revenue, although it claimed this was not related to the proposal to close the Lichfield depot.

"After an analysis of business efficiency, it has become necessary to consider the potential reduction in the number of logistics sites," said a spokeswoman. "Based on geographical location and additional capacity at other sites, the possible closure of the Lichfield depot is currently being considered."

The company last week entered a 90-day statutory consultation about the proposed closure. It stressed no decision had been made. The GMB, which represents workers at the site, said the move would be devastating for staff, which had already accepted reduced hours or flexi-time in a bid to keep their jobs.

3663 has already closed five depots over the past 12 months as it embarks on a rigorous cost-saving exercise. It also closed its catering butcher, The Barton Meat Company, at the start of this year.

3663 had no plans to close any other depots "at the moment", the spokeswoman said. However, the company has also made some sales staff at its Lee Mills depot redundant, The Grocer has learned.

One industry watcher said more cut-backs could be in store for the wholesaler. "It seems 3663 is cutting costs frantically at the moment and it still has a lot of staff it could cut if it really wanted to become a lean and mean operator," he said.