Peavey to shut UK distribution centre
Peavey Electronics has announced it is to close its UK distribution facility with the expected loss of around 40 jobs.
The company said in a statement that its UK facility was originally set up as a manufacturing plant for large items to minimise international shipping expense. It named the advancing and lower cost of Chinese manufacturing as the reason for the facility no longer being needed.
“The company has been looking closely at the structure of its European operation and what the best fit will be for the business moving forward,” explained Clive Roberts of Peavey Electronics. “Our organisation needs to become more efficient and improve the allocation of international resources, especially if we are to continue the mantra and market niche that Hartley Peavey set in place; providing quality gear at a fair price.”
The company retains multiple US factories throughout Mississippi and Alabama as well as having distribution facilities in the US, Europe and Asia. Peavey says the international restructuring will include a “reduction of complexity in operations” which will take place over the forthcoming months. The company says it intends these changes will improve the international supply chain and the sharing of global resources.
More details of the restructure will be announced over the coming months.