Business and Economics

Brexit-backing Newark left reeling as its biggest employer up sticks – for mainland Europe

Residents in Robert Jenrick’s constituency of Newark have been left reeling following the decision of its biggest employer to shut up shop and move its entire production to mainland Europe.

Goodlife Foods said it had “no viable alternative” but to move out of the UK in order to leverage the benefits of scale and efficiencies on offer.

The food producer, which is based on the Newark Industrial Estate, plans to close its UK base within two weeks on 6th May, resulting in around 110 job losses.

Newark voted to leave the European Union by 60.4 per cent in 2016.

“Disappointed”

Jenrick, a former housing secretary, said he plans to write to Daloon Foods, the entity behind Goodlife Foods, to express his disappointment and to demand assurances for local staff.

“I am very disappointed with the company’s decision and concerned for the employees involved,” Jenrick said.

“I will be making contact with the company to seek assurances as to how they are supporting the staff they are letting go,” Jenrick said.

Goodlife Foods said it decided to move its entire operation to Europe after “completing the collective and individual consultations with our colleagues on ways of avoiding the proposed Newark site closure, or at least minimise the impact.”

“No viable alternative”

“Unfortunately no suitable or viable alternatives have been found, therefore, the decision has been taken to close the UK manufacturing site in Newark, and to subsequently move all volume into our group production facilities in mainland Europe,” the company explained.

“By moving our production out of the UK, we can leverage the benefits of scale and efficiencies that the wider group can offer.”

“The decision has been driven by the challenging trading conditions that we have experienced in the UK market over recent years and that we believe we would continue to face into 2022 and beyond.”

“We will continue to manufacture product at our Newark site up until the closure date of May 6,” the statement read.

“Leading up to this date we will be working closely with and supporting our colleagues in Newark to find alternative employment outside of Goodlife Foods.”

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Jack Peat

Jack is a business and economics journalist and the founder of The London Economic (TLE). He has contributed articles to VICE, Huffington Post and Independent and is a published author. Jack read History at the University of Wales, Bangor and has a Masters in Journalism from the University of Newcastle-upon-Tyne.

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