Gousto proposes closure of Clay Lake warehouse
Gousto, the popular UK meal kit delivery service, has announced a proposal to close its warehouse in Clay Lake, Lincolnshire, putting approximately 290 jobs at risk. The company stated that the decision is necessary to operate more efficiently and maintain low prices for its customers.
Impact on staff and company operations
The closure would affect all 290 employees at the Clay Lake site. Gousto's founder and chief executive, Timo Boldt, described the proposal as "incredibly difficult" given the contributions of the staff. He said: "This is an incredibly difficult proposal given the impact on our colleagues in Clay Lake, who have contributed enormously to Gousto’s journey over a number of years." The company has pledged to support affected employees through the process with care, respect, and practical help, including prioritizing redundancy assistance if the closure proceeds.
Reasons for the proposed closure
Gousto, which sends ingredients and recipe cards to subscribers across the UK, currently operates two warehouses: the smaller Clay Lake facility and a larger site in Warrington, Cheshire. The company said that running two warehouses is no longer efficient in a highly competitive food market. Boldt added: "In a highly competitive food market, it is, however, essential that we operate as efficiently as possible so that we can continue to invest in our proposition and keep prices as low as possible for customers." The Warrington site, which opened in 2022 and employs around 600 people, has received significant investment and produces the majority of Gousto's meal kits. The company is considering consolidating all production at Warrington.
Background on Gousto and the meal kit market
Gousto allows customers to choose recipes weekly, with pre-measured ingredients delivered to their door. Subscriptions are flexible, and boxes can be skipped. Prices start from £18.99 and go up to £60, with a £3.99 delivery fee. The company competes with other meal kit services like HelloFresh and Mindful Chef. The proposed closure has not been finalized, and staff are awaiting further information about their futures.
