1000 jobs at risk as Sainsbury’s distributor faces collapse

Asda and Sainsbury’s chilled food distributor could collapse thanks to a series of disasters striking the grocery supply chain.

Sky News reports that EVCL Chill, part of one of the UK’s largest logistics groups, is on the verge of going into administration.

Industry sources said the company, which employs roughly 1000 people, was discussing how its largest clients could keep their shelves stocked.

It comes at a fraught time for supermarkets, with experts warning that the haulier crisis will mean food shortages around Christmas.

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Pork and poultry also looked like they could disappear from shops as CO2 supplies dwindled, until the government yesterday agreed a multi-million bailout with a US manufacturer.

PricewaterhouseCoopers (PwC) is reportedly being lined up as EVCL Chill’s administrator.

Reasons for the firm’s problems are unclear, but industry sources cited driver shortages and wider supply chain costs as likely culprits.

It went into administration just last year before being bought by EV Cargo, its current owner.

EV Cargo and PwC both declined to comment.

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