Paragon Customer Communications has announced plans to shut its fulfilment site in Jarrow as it consolidates operations across fewer sites.
Jarrow’s services include pick and pack, bench fulfilment, and response handling. It produces some 12m packs a year from a 9,290sqm facility.
Around 90 staff employed there were informed of the decision yesterday by Paragon CC chief executive Jeremy Walters.
He said that a declining market and ongoing price pressures had impacted the operation, which is set to close by March 2020 when its lease expires. Jarrow was originally part of the Direct Solutions International (DSI) business.
“We’re sorry and disappointed to have to make the tough decision to exit one of our sites, but it is the right decision for the broader business,” Walters said.
“We will be doing our absolute best to support the people affected as much as we can, either within Paragon or in finding work outside the group.”
Walters also thanked the employees for their support and commitment.
He said Paragon CC hoped to migrate some of the work currently carried out at Jarrow to the division’s Nottingham, Peterborough and Sunderland sites.
“We are not going to be closing the site overnight and we will be working with our employees and customers to find the best solutions between now and when the lease ends,” he added.
“By taking the difficult decision to consolidate our sites, we believe we can improve efficiencies, reduce costs and ensure we remain a sustainable business for the foreseeable future.”
Paragon CC is part of the highly-acquisitive €750m-plus (£670m) turnover Paragon Group. The division has nine production sites and employs more than 2,000 staff. Earlier this year the business acquired parts of the Howard Hunt group of companies.
Walters said that overall the Paragon CC business was doing well “despite some headwinds in the market”, and had picked up some of the print contracts previously handled by Howard Hunt. “A bit like with Anton Group, the work has just been absorbed as there is still overcapacity.”