The future of Newport-based English Village Salads (EVS) is on a knife edge after parent company Bakkavor announced a consultation over its continued operation, the Fresh Produce Journal has reported.
The 90-day consultation period has been opened with employee representatives to “discuss the ongoing viability of the business operation” following a sustained period of reduced demand, Bakkavor said in a statement this week.
EVS was hit by a major setback earlier this year when it lost a big Asda contract after the supermarket took a substantial part of its salad procurement in-house to International Produce. That led to some 24 redundancies at its operation in Selby, while the current consultation applies to the Newport site.
“This, combined with the ongoing challenging tradingenvironment, has continued to have a significant effect on the volume of business managed through EVS throughout the remainder of 2011,” Bakkavor said.
The consultation has kicked off with 134 hourly paid staff and 44 salaried staff.
“Themanagement of EVS understand that this is a very difficult time for allemployees at EVS and stress that this action is no reflection on the significant commitment that staff have continued to show in very a toughmarketplace,” the company added.
