A North West-based textile service provider has announced it plans to cut hundreds of jobs and close one of its key bases due to the ongoing uncertainty and pandemic impact.
Johnson Service Group said it would start next year with 200 fewer employees in its workwear division after a review of its resource levels.
Announced in a trading update to the markets this morning, the Runcorn firm said the move is to "improve efficiency".
It will also mean the closure of the Newmarket site.
CEO Peter Egan said: "The past three months' performance has been a mixed picture across the Group reflecting current market conditions, with the Workwear business currently seeing volumes having returned to pre-Covid levels, whilst the focus within the HORECA business has been to manage the cost base and ensure we are ready once volumes in the UK's hotel, restaurant and catering markets resume in the coming months.
"I have nothing but admiration for the way in which our employees have risen to the many challenges posed by Covid-19. I thank them for the commitment, hard work and resilience they have demonstrated which has enabled our businesses to continue to operate and to service our customers effectively.
"We have taken the right steps to manage our cost base and maintain a firm foundation for JSG, with the strength of balance sheet and flexibility of resources and operations to provide for future strong returns when the recovery emerges."
The statement said while workwear volumes had recovered to the levels seen in February, there was an expectation that the lower level of new sales signed during the national lockdown, the increased uncertainty for industrial customers and the potential for further lockdowns "will restrict the division's ability to achieve organic revenue growth in the short term".
The firm said the past three months' performance had been a "mixed picture" across the group, with the hotel, restaurant and catering business attempting to manage uncertainty for when the hospitality sector resumes.
All of its existing sites were open until November 7, but now three sites have been mothballed as a result of the current national lockdown.
The opening of the Leeds site, originally scheduled for October, has been delayed "until volumes return to more normal levels".
