Mainetti restructuring puts Jedburgh jobs under threat
- Published
Mainetti said it hoped Emtelle could take over the site in the Borders
Nearly 100 jobs are at risk in the Borders after a coat hanger firm announced restructuring plans.
Mainetti has said it will start consultation about the plans to consolidate UK operations to Wrexham.
The move affects 96 production, warehouse and operations staff in Jedburgh who are at risk of redundancy.
The company said finance and sales staff in the Borders were not involved. It hopes to sell the site to another firm needing more space in the town.
"Our proposal is that Emtelle will take over the factory space that is vacated and Mainetti will rent space back from them," said regional managing director James Hutchison.
"Emtelle will have an immediate requirement for staff and some Mainetti employees will transfer to them.
"Mainetti will also support staff who wish to relocate to the Wrexham facility to reduce the redundancy impact."
The company said it had seen a downturn in demand for its products
He said the announcement would come as a shock but had not been reached "without a lot of thought and consideration".
"We realise that the consultation process while people are furloughed and following social distancing guidelines is a new and difficult situation for everyone and obviously makes face to face contact very difficult," he said.
"We appreciate this and will do our utmost to ensure a fair consultation process."
He said the coronavirus pandemic meant the company had to make changes to ensure its business was sustainable in future.
Mr Hutchison said many high street clothing retailers had been struggling resulting in reduced demand for hangers alongside greater recycling of hangers.
Despite efforts to develop new business he said it had not offset the reduction in the hanger market.
It is part of a double jobs blow to the town as toolmakers L S Starrett have signalled their intention to shed the majority of their current Jedburgh workforce.
About 130 people are currently employed at their site in the town.