More than 250 jobs could be lost if Rugby’s Penguin book distribution centre closes

The Post Office is said to be making a loss
The Post Office is said to be making a loss

More than 250 jobs could be lost at Rugby’s Penguin book distribution centre if a proposal to close it is passed.

Publisher Penguin Random House announced plans to close the Central Park facility on Friday (December 4).

The centre’s 255 employees have been put at risk of redundancy and have entered a period of consultation, which could take up to four months.

If confirmed, the proposal would look to close the Rugby site in 2019 with redundancies being phased in from May 2017. The distribution of the company’s books would transfer to one of its other distribution sites, The Book Service, in Frating in 2017/18.

Penguin said the proposal was put forward due to “a changing marketplace which has seen a decline in physical book volumes leading to over capacity within the company’s distribution operation”.

Tom Weldon, CEO Penguin Random House UK, said: “This proposal is in no way a reflection of the contributions of all at Rugby, who have always provided an excellent service.

“Proposing to part company with colleagues is never easy. Making this proposal has been a difficult but thoroughly considered and necessary action which we believe will enable us to better match market requirements and continue to deliver the excellent distribution service for which we are known.”

A company statement added those made redundant would be offered generous redundancy packages “significantly higher than the statutory minimum” if the proposal is confirmed.