Drinks depot facing closure at Fosse Park

A union is fighting plans to close a drinks distribution depot which would lead to the loss of 40 jobs.

Waverley TBS wants to shut the site at Fosse Park, near Braunstone, after a fall in demand for its products caused by the recession.

The depot, which is based at Everards Brewery's Castle Acres site, transports alcoholic and soft drinks to 168 pubs, as well as to other businesses.

Waverley, which bought the business from Everards three years ago today, plans to relocate the work to Peterborough and Birmingham and offer some redeployment.

The Unite union said it was unrealistic to expect workers to travel 40 miles and it wants to help Waverley look at ways to reduce the running costs of the depot during the downturn.

Everards says it is willing to review the rent Waverley pays in a bid to keep it at the site.

Paresh Patel, Unite's regional industrial organiser, said: "The issues they have raised, they say, make it difficult for the site to remain open, but we have said there are alternative ways to alleviate this.

"Their argument is there has been a drop in number of people buying their drinks, as well as issues relating to the running costs, including business rates.

"We have spoken to both Everards and Blaby District Council who said they would be willing to look at reducing the rent and business rates.

"It's not realistic for staff to travel to Peterborough and Birmingham because of the cost of travelling and the time it would take."

He said, under the proposal, six staff would remain at the Fosse Park site, which would be run on a smaller scale.

Waverley spokeswoman Jackie Trousdale said: "We are reviewing our ongoing operations because of the economic climate and have entered into consultation with the Leicester site in regards to closing it down.

"Under this proposal, we would hope to relocate some people to nearby depots in Peterborough and Birmingham. That's where the bulk of the work will be going."

Stephen Gould, Everards managing director, said: "We did explore different rental terms in order to retain them at the site. But they have looked at different economic benefits and still decided they needed to close Leicester."

Everards sold the distribution business, which has a turnover of about £12m, to Waverley in June 2006.

The business has more than 500 customers, who operate within a 70-mile radius of the brewery. About 25 employees transferred to Waverley after the deal.

Everards, which initiated the sale to allow it to focus on developing its pub estate and build its cask ale brand, employs 104 people and was founded in 1849.