Fyffes, Europe's biggest fresh food distribution business, confirmed today that its decision to restructure the British operations of its Geest Bananas business would result in the loss of 200 jobs.
Geest Bananas, owned jointly by Fyffes and Windward Island Banana Development Company, said that it was closing two Geest ripening centres at Chippenham, near Bristol and Clyde Valley in Scotland. The number of employees at its head office was also being reduced.
Fyffes is also closing one of its UK ripening centres. The plant to close is in Leicester. The company confirmed that it is not considering any restructuring of its Irish operations.
Fyffes said in June it was reviewing its banana business and would restructure operations after downbeat trading statements, including a 40% fall in its interim pre-tax profits, caused a sharp fall in the value of its shares. The stock has declined by about 64% during that period, underperforming the wider Dublin market, where Fyffes has its main listing, by nearly 70%.
However, the stock was faring better in trading this afternoon. Fyffes's Dublin-listed shares were up 10.3% to 0.86 euros, while its London-listed shares were up 5.2%.
The company also said that trading in the 12 months to October 2000 has been broadly in line with current market expectations. Following the change in the company's reporting date, the financial accounts for the 14 months to December 2000 will include the seasonally weaker months of November and December for both 1999 and 2000. These results will be released in February.
