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Geodis wraps up United
Page 5
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• More than 1,000 jobs are to be axed as Geodis UK closes its ailing parcels subsidiary United Distribution (previously United Carriers). Despite continued investment, including a Lim extension to its Smethwick, West Midlands hub last January, Geodis says a significant downturn in volumes, coupled with increasing industry pressure, has made the business unviable.
Geodis bought United Carriers Group three years ago for a reported £8.5m, but despite heavy investment United Distribution was unable to break even.
Jean-Marie Dutoya, managing director of Geodis UK, says: "United Distribution was very difficult, We tried but never succeeded and were forced to say enough is enough." Dutoya explains that it was becoming evident the company would not recover as early as the middle of 2001.
He adds: "The previous managers of Geodis bought into United without due diligence. We tried a lot to make it work but to no avail. United was never a good brand image to start with and we were unable to get rate increases without losing customers."
Dutoya promises to honour all contracts with subcontractors, ensuring none of them are bankrupted by the closure.
United is the third firm of its type to go under in the past 12 months. Previous casualties in this ultra-competitive sector include Fastrack and Panic Link.