Food giant Rank Hovis McDougall (RHM) has cancelled the bulk of its proposed distribution strategy for its bakeries division.
RHM, one of the UK’s largest food companies, has pulled out of three deals.
The Marlow-based firm, whose products include Hovis, Mother’s Pride and Granary, had made an offer for a 150,000 sq ft (14,000 sq m) prelet at Miller Birch’s Access 26 scheme at Willow Farm, Derby.
Similar-sized units were lined up at ProLogis’s 120,000 sq ft (11,150 sq m) Caballero Park in Basingstoke and a separate site in Wigan.
RHM, which runs 69 sites across the UK, including 37 distribution facilities, said it had appraised its distribution strategy but after taking space at Dagenham and Moss End in Glasgow, it decided it was not the most cost-effective model.
RHM’s group finance director, Michael Shurch, said: “Despite going a long way down the line with landlords, the decision was reversed.
“There are no plans for new sites.”
References: EGi News 24/03/03
