Recipe box retailer Gousto has launched a consultation with staff around plans to consolidate its manufacturing facilities, putting 290 jobs at risk, Retail Week can reveal.
The retailer plans to close its manufacturing facility at Clay Lake in Lincolnshire in favour of focusing on its more technologically advanced Warrington facility.
Gousto said if it went through with the closure, 290 roles would be lost.
“The company recognises the significance of this and does not take it lightly,” the retailer said.
“The immediate priority is to support colleagues through this process with openness, respect and practical help, including exploring redeployment opportunities wherever possible”.
Opened in 2022, the Warrington facility has “received significant and sustained investment, developing into a world-class fulfilment centre that now produces the vast majority of Gousto customer orders”.
It added that as Warrington has developed and grown, Gousto believes operating two manufacturing sites is “increasingly duplicative and less efficient, particularly as the majority of demand is now fulfilled through Warrington’s greater scale and lower cost per portion”.
The news comes after Gousto announced a strong FY25 performance in May, reporting 10% revenue growth and delivering a third consecutive year of positive EBITDA.
The proposed closure of Clay Lake is part of the retailer’s focus on building what it calls a “simpler, more efficient operating model to support long-term growth”. Gousto has said it plans to continue to invest in innovation and technology, accessible pricing for customers.
Gousto founder and chief executive Timo Boldt added: “This is an incredibly difficult proposal given the impact on our colleagues in Clay Lake, who have contributed enormously to Gousto’s journey over a number of years. In a highly competitive food market, it is however essential that we operate as efficiently as possible so that we can continue to invest in our proposition and keep prices as low as possible for customers.
“Over recent years, we have invested heavily in Warrington, building a highly advanced fulfilment hub with the technology, scale and capacity for future growth. That investment has transformed the way our network operates and gives us the opportunity to simplify our manufacturing footprint for the future.
“While this reflects the evolution of our operations, it does not make the impact on colleagues any easier. Our focus now is on supporting people through this process with care, respect and practical help.”
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