Total Produce UK has revealed that it has taken a preliminary decision to close its banana ripening and fresh produce distribution facility in Norwich, eastern England because the facility is no longer viable in the current economic climate.
Denis Punter, managing director of Total Produce UK, told Fruitnet that the decision on the Lansdowne Road site, which employs 44 people, had been taken in view of the imminent end of the facility’s current lease, the site’s location and the need for “substantial investment” to bring it up to modern standards.
“The lease is up for renewal at the end of July and we looked at the cost of investment to refurbish the facility and the long-term view of ripening bananas in that area and we came to the conclusion that in the current climate it was not a viable proposition,” he said.
Mr Punter said the recent loss of a contract with a leading cash-and-carry chain, as reported in the local media, had not been a major factor in the decision to close the site.
“The facility has become older and ripening facilities have become far more sophisticated and (the decision) comes down to the fact that the lease is due to end and we would have to invest substantially and it doesn’t add up,” he added.
However, Mr Punter stressed that “no final decision” would be taken to close the site until Total Produce had completed a consultation process with the facility’s employees.
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