DISCUSSIONS have begun with staff at Condor Logistics in Portsmouth over the closure of the firm.
Condor Group says it plans to close its logistics division, which employs around 110 people in the UK, but most of which are based in Portsmouth.
The company says it has suffered because of the recession, as demand for its transport services have had a ‘marked reduction’.
Its business, which operates between the Channel Islands and the UK, had been shored up by internet orders needing to be transported, but the scrapping of a government relief scheme has put paid to the numbers of those shipments.
The firm said Condor Logistics’ trading volumes have fallen below a sustainable level in a sector which is greatly over supplied, and the company has made significant losses in recent months.
Condor Ferries, which is also part of Condor Group, has not been affected.
Ken Soar, Condor Group Director, said: ‘We have taken the difficult decision to start these discussions with our employees about the closure of Condor Logistics after very careful consideration and only when many other options have been taken into account.
‘We are keenly aware that this will cause anxiety to our colleagues working in the logistics division in Portsmouth and we are committed to support them at this difficult time.
‘Condor Group is offering Condor Logistics employees redundancy packages which exceed the statutory requirements plus a range of support services to help them find new jobs.
‘Where possible, staff will be able to apply for jobs elsewhere in Condor Group.
‘We are refocusing the business on our core activities operating lifeline ferry and shipping services and these are not affected by this announcement.’