Troubled Simpson Group is braced for job losses

Jun 26 2008 by Andrew Mernin, The Journal

THE loss of a major contract with Sainsbury’s has thrown the future of up to 40 workers at a creative firm in doubt.

Washington-based Simpson Group is said to be preparing for the possibility of job cuts after client Communisis lost its Sainsbury’s print management contract to St Ives.

Simpson, which specialises in making retail displays, is preparing for the worst should it lose a large proportion of its work once St Ives takes on the contract in September. Chairman Mark Simpson said he will make a decision over the future of his 80-strong workforce after the fallout from the loss of the Sainsbury’s contract becomes clear.

Mr Simpson has warned staff that there could be up to 40 job losses in what has been a tough year which has already seen job losses at the firm.

The chairman confirmed that three months ago the company axed 11 members of staff due to “the credit crunch and changes in technology in the printing industry”.

He said: “It’s been a very tough year because we are very dependant on the retail sector.

“A fair percentage of our trade is a result of the Sainsbury’s contract and, as with any multi-million pound contract loss, job cuts are always a possibility.

“If there are job cuts, we will do our best to ensure that the people affected find work elsewhere. There is still the possibility we can pick up more work from Sainsbury’s so we are in a waiting period.”

According to reports in print trade press, St Ives offered to reduce the cost of Sainsbury’s current contract by 20%.

Simpson Group, whose other clients include Sony and Matalan, has been designing and printing point of purchase materials for retailers and brand manufacturers for almost 35 years and is now based in a £4m facility in Washington.

In April the firm won a deal to revamp the head office of football kit maker Umbro.

The company used Umbro’s ‘Bring it on!’ strap-line to redesign the whole of the company’s reception area at its head office in Cheshire.