Cheap goods giant Matalan has farmed out its logistics operations in a five-year deal, worth around£65 million, to logistics firm Wincanton.
The company takes over the Matalan operation on Sunday. The arrangement covers homewares as well as clothing, and means that 140 people in Matalan's supply chain operation become Wincanton employees.
It effectively puts Matalan's Skelmersdale distribution centre, as well the transport of goods from the centre to stores, under Wincanton's control.
Goods arriving from Matalan suppliers to the centre will not be affected.
Matalan supply chain director Roger Burnley said Wincanton will bring additional knowledge to the business.
'Wincanton has significant experience in national transport operations,' he said. 'In addition, Wincanton is better placed to manage new transport legislation, such as the working time directive, given its level of expertise in this area.'
Wincanton business unit director for clothing Chris Kingshott will oversee the operation. He said Wincanton would bring work security for Matalan's transport employees, as well as development opportunities.
He said: 'This is a significant and key contract for us. We hope to use our geographical spread to develop excellent service.'
Matalan has 165 stores averaging 27,000 sq ft (2,500 sq m) and covering a total area of 4.5 million sq ft (418,050 sq m). John King took over as chief executive earlier this year, following the departure of Paul Mason.
At the start of June, Matalan reported that although retail sales for the 13 weeks to May 31 were up by 6.2 per cent, like-for-likes plunged by 7.5 per cent.
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