Supply Chain Council of European Union | Scceu.org
Distribution

Jobs lost at Leicestershire wholesaler Cromwell Tools in major restructure

Jobs have been lost in a major redundancy programme at a Leicestershire-based tool wholesaler.

Management at Cromwell Tools, which has a £250 million annual turnover, say they have completed a major restructuring among its 1,800 staff.

It comes as latest accounts for Cromwell Tools Ltd show the national business made pre-tax losses last year of almost £5.9 million, compared to profits of £2.7 million in 2017.

The business originally planned the potential loss of 200 to 250 jobs, with most going at its main base in Chartwell Drive, Wigston, just outside Leicester.

A spokeswoman said they had managed to keep the final figure at “less than 10 per cent” of the total headcount.

Most of the losses were among “non-customer facing team members” and were necessary as part of a policy to “simplify its structure” and cut costs.

The business opened a customer service centre in Dudley in 2018, centralising our customer service operations.

While that created redundancies across the UK at the time, including some in Leicester, it also created more than 200 jobs in Dudley.



The Cromwell world distribution centre in Wigston

Today, a spokeswoman for the company said: “As mentioned before, the changes made to Cromwell are to help ensure we are fit for the future.

“Our headcount reduction is lower than previously shared with you; less than 10% of our total business headcount have left by means of redundancy, and we can confirm that we provided enhanced redundancy terms to those affected.

“Finally, we are very pleased with the contracts we have recently gained and are looking forward to partnering with more fantastic customers, supporting them to keep their operations running and their people safe.”

The business was founded at a house in Cromwell Crescent, Market Harborough, in 1968.

Today it has branches around the UK and abroad selling everything from maintenance and cutting tools to personal protection products, workbenches and tool pouches.

Read More

What’s going on in the business world?

It was ranked 22 on the Leicester Mercury’s 2019 list of Leicestershire’s Top 200 companies.

Four years ago it was sold to Chicago-based, Fortune 500 company firm WW Grainger Inc, in a £310 million deal.

Latest accounts for Cromwell Tools Limited showed a 2017 turnover of £247 million. Its pre-tax profits of £2.7 million were substantially down on the previous comparable period.

One former member of staff said: “They have already started new shift patterns.

“Apparently they have got some more, bigger contracts, but there has still been a lot of upheaval.”

Related posts

Bill Legalizing Adult-Use Marijuana Approved by Senate, Sent to Governor

scceu

Place North West | Prime’s Speke shed lets to wholesaler

scceu

Amedeus Signs Ticket Distribution Deal with Air India

scceu