EXCLUSIVE: Gousto mothballs two fulfilment centres
29 September 2023
Recipe box company Gousto has decided to mothball two of its fulfilment centres in the UK amid a cost and capacity reset instigated at the end of 2022 to help it to return to a positive EBITDA (Earnings before interest, taxes, depreciation, and amortization) in 2023.
By Liza Helps, Property Editor Logistics Matters
THE TWO facilities include a £40 million 295,000 ft2 chilled fulfilment centre at St Modwen Park Burton which Gousto took in 2022 and was set to move into this year and a second hand property totalling 196,000 ft2 on the Tunnel Estate in West Thurrock. Both buildings will now be sub-let.
A Gousto spokesperson said: “Gousto has returned to positive EBITDA in 2023 as a result of a cost and capacity reset undertaken at the end of 2022. As part of the reset and to better align production capacity with near-term demand, investment was paused in Burton, East Staffordshire. We plan to sub-let the facility in 2024.
“Looking ahead Gousto retains the capacity to double revenues from within its existing two highly automated production facilities at Warrington, Cheshire and Claylake, Lincolnshire without any further significant additional investment. As topline growth accelerates again there is also the ability to utilise Burton in the future.”
Losses for Gousto reached £157.6m in 2022, against £19.9m a year earlier, which it blamed on spiralling food price inflation and falling consumer confidence.
The facility at Burton includes three-storey offices and delivers a BREEAM Excellent and EPC A+ rating. It was let on a long lease.
The West Thurrock facility is known as Chillbox and is temperature-controlled. It also includes a two-storey office, welfare suite and ample car parking spaces. It was leased in 2021 on a 10 year lease.