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Lane Group hit by Next loss
Page 7
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• Bristol-based logistics firm the Lane Group has suffered a major blow following the decision by its biggest customer to take its distribution service back in-house.
The clothes retailer Next has announced that it is to take over the retail distribution work that had been contracted out to Lane for the last eight years.
In a terse statement, the clothes firm gave no reason for its decision and simply pointed out that the lane employees currently working on the Next contract, together with the fleet of vehicles and trailers, will be incorporated into Next's in-house operation over the next three months.
Although Next is refusing to say any more, CM understands the decision affects around 380 employees including drivers, warehouse staff as well as managers and admin staff. All will transfer over to Next under TUPE regulations.
The biggest impact will be felt at Next's main distribution centre at South Elmsall, West Yorkshire, while the other sites affected are Severn Beach (Bristol), Hemel Hempstead, and one in Scotland.
Most retailers now outsource as much of the transport operation as they can and this move certainly bucks that trend. Lane has invested heavily In the Next contract and is understood to have implemented a sophisticated distribution network that worked well.
Lane's managing director Rebecca Jenkins admits she Is disappointed with the decision but says: "We still have a very strong customer portfolio along with a number of major new contracts such as Magnet, which have come on stream in the last few months, "We have gained considerable expertise in the eight years of working alongside Next and we will now use this experience as a major asset to our business going forward."