Hundreds of jobs in Hackbridge will be lost following a decision to close a distribution services depot, the Comet has learnt.

It is believed around 500 employees will be made redundant at Exel's site in London Road following a restructuring move by one of its customers.

An anonymous source told the Comet on Monday employees had been warned not to speak about the closure which is expected to happen in April.

He said: "The employees were told not to speak to the press about any of this. The whole company is closing down on April 14 which means about 500 people will lose their jobs."

When the Comet contacted the firm, which has its UK headquarters in Milton Keynes, a spokesman confirmed the site would be closing down but was unable to say when this would happen or how many employees were currently working there.

A statement issued this week said the move had resulted from an earlier decision by Sainsbury's to redevelop its distribution network.

It added: "Exel is working closely with the customer and employees at this site and both staff and union representatives have been informed of the changes in an on-going consultation process.

"Exel is keen, wherever possible, to secure employment positions for the affected staff through other opportunities at local Exel and Sainsbury's sites."

A spokesman for Sainsbury's said the decision to close the site, which is operated on behalf of the retail group by Exel, was part of its Supply Chain Transformation programme.

"We support Exel in their efforts, wherever possible, to secure employment positions for affected staff through other opportunities at local Exel and Sainsbury's sites."

A spokesman for Sutton Business Federation said the number of employees working at Exel's Hackbridge site placed it among the borough's top employers.

"Small to medium sized businesses usually employ around 150 people so Exel would definitely rank as one of Sutton's larger firms."

The UK listed company, which has freight distribution sites in Middlesex and Sussex and employs more than 60,000 people, has a current turnover of £4.5billion.

January 31, 2003 13:30