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Menzies Distribution cuts 18 jobs in Oban

Menzies has said it has "decided to exit some contracts".
Menzies has said it has "decided to exit some contracts".

The distribution arm of logistics giant John Menzies has laid off 18 people in Oban, including 15 at a delivery firm it bought in November.

Menzies Distribution said the move followed a review into operations at Oban Express, which was going through a “period of difficult trading”.

Of the 15 former Oban Express employees who have been made redundant, 14 were based at a depot in the Argyll town and one was in Glasgow.

A further three positions have been terminated at a separate depot in Oban which Menzies inherited following its purchase of AJG Parcels in June.

Menzies Distribution, whose core activities involve night-time newspaper and magazine deliveries, said 10 of the redundancies were voluntary.

A spokesman for the Edinburgh-based firm said: “Following the completion of this process, Menzies Distribution’s sights are set firmly on delivering the best possible service to our customers in Argyll.

“We have a great team in place at our Oban depot, and we mean to build on our history in the area as a truly indispensable servant to local people and businesses.”

Menzies snapped up the company as part of its push to keep its fleet ticking over with parcel deliveries during the day, with a focus on the harder-to-reach areas of Scotland.

It bought Inverness-headquartered AJG last summer for £7.5million before moving on to Oban Express in November.

Oban Express, which turned over more than £3.5million, had been owned by former directors Lorraine Parrott, Walker Owens and Louise Somerville.

Menzies said 30 former Oban Express employees would remain in the business following the review.

Earlier this month, Menzies Distribution made it a hat-trick of acquisitions in less than a year when it swooped for Aberdeen-based Thistle Couriers.