Britain’s largest builders merchant, Travis Perkins, is to put 600 jobs at risk and close 30 branches due to an “uncertain UK outlook” next years in the wake of the Brexit vote.
The firm is closing 30 branches of Travis Perkins, Benchmarx, BSS and PTS, as well as 10 smaller distribution centres, and will make further efficiency improvements to its supply chain in an attempt to reduce costs.
The 600 workers affected by the changes have been informed.
Chief executive John Carter said:
“It is clear that the result of the EU referendum has created significant uncertainty in the outlook for our end markets and we did experience weaker demand in the run up to and immediately following the referendum. Our two-year like-for-like sales in July have been below the levels we experienced in the second quarter, however we have seen a gradual improvement through the course of the month. In our view it is too early to precisely predict end market demand and we will continue to monitor the lead indicators we track and will react accordingly.”
The firm was one of the companies on the FTSE 100 hardest hit by the decision to leave the European Union over fears it would affect the UK’s property and construction industries. Its shares are down more than 22% since the referendum on 23 June.
Travis Perkins currently operates 2,060 stores across the UK and employs 28,000 people.
