Exel's last news contract goes by Sally Nash • Exel
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Logistics will lose its last major newspaper distribution contract in June, severing an 11-year association with Mirror Group Newspapers.
As CM went to press, Exel Logistics confirmed that the Mirror Group is changing its supplier, but the Mirror Group has stressed that its decision was not based on the quality of Exel's service.
A spokesman for Exel says the loss of this latest contract leaves NFC with only a "few bits and bobs" in newspaper distribution work. It is not known if job losses will result More details are expected to tomorrow (1 May) when the Mirror Group is due to announce the winner or winners of the tenders.
It dismisses reports that TNT will be handling the work in the North and Eddie Stobart in the South. "These are just rumours," says the group's deputy circulation director, Phil Spittle.
About seven distribution firms were invited to put in prices for the work, he adds.
The contract will run from 30 June, when Exel's deal ends. Exel Logistics launched its Newsflow operation in 1987 with the Mirror but subsequently lost two major contracts—first its work for Express Newspapers in 1996, followed by the Daily Mail.
Over the past few years Exel has dropped the Newsflow name and reorganised with a change of directors.
One former Exel Newsflow driver, who was taken on at the launch, says it is sad to see the demise of the newspaper work because at one stage Newsflow was a thriving £30m business.
Exel has won warehousing and distribution business worth £17m handling chilled produce for Safeway stores in the Midlands from a new temperature-controlled site at Droitwich.