Food wholesaler Cimandis will close down
- Operations in Guernsey and services to Alderney, Herm and Sark will end in August
- Follows decision to exit Jersey market announced earlier this year
- Stock clearance sales to support food businesses this summer
- “Economic climate” in the island blamed
- Landlord has put Pitronnerie Road Industrial Estate premises on the market for £5.9m.
Cimandis’ operation in Guernsey will close at the end of August.
It follows a similar decision to shut the Jersey branch, which will stop trading at the end of this month.
“Following an extensive period of operational review, including increased shipping and rent costs and the unique logistical challenges of operating in an island market, we've taken the tough decision to close Cimandis Foodservice,” said Cimandis Managing Director Nigel Holliday.
“I would like to stress that this decision has not been taken lightly, and everything that could be done to avoid this scenario was explored. However, despite our best efforts, the economic environment has rendered ongoing operations in Guernsey unsustainable.
“This will mean that all product lines available from Cimandis Foodservice will no longer be available for purchase, and our operations in Guernsey and our service to Alderney, Herm and Sark will stop at the end of August.”
They will be “running stock clearance sales to help support local food operators with the essential products needed to maintain menu continuity during the busy summer season”.
“This will be a gradual change, and as a result, we will be working closely with our recruitment agencies and other local employers to assist our affected team members in finding new roles,” he said in a message on the company’s website.
“We will be sure to keep you informed of timelines in the coming weeks, but if you have any further queries regarding this change, including concerns about product availability, please do not hesitate to contact your Account Manager in the first instance.
“We want to take this opportunity to thank you for your understanding and loyalty, as well as your valued business and support.”
Cimandis is part of the Caterfood Buying Group, owned by BidCorp, which has eight independently run member businesses in England, Wales and Cimandis in the Channel Islands.
In May 2015, Sandpiper CI sold Cimandis foodservice division to the Bidvest Group, now known as Bidfood.
Cimandis had more than 1,000 customers across the Channel Islands in retail, hospitality and the service sectors.
A 15 year lease for their current premises ends on the 24 December 2025, according to marketing information on Rock Commercial.
It says that the current passing rent is £400,000 per annum.
The property used in Guernsey by Cimandis is being marketed for £5.9m.
The site covers about 1.74 acres with two detached warehouses, a yard and additional parking.
"Opportunities to acquire large freehold industrial sites are very rare and have commanded a premium when they do arise," the marketing information says.
"Much of the industrial stock in Guernsey is older with low eaves and limited yard space which along with the location makes the Cimandis opportunity very attractive for prospective purchasers or occupiers.
"The market in Guernsey is strong with demand from occupiers across a number of industries and indeed owner occupiers. There are two new light industrial schemes currently under construction at Braye Road and Bulwer Avenue, both offering much smaller hybrid units in terraces.
"In short, there is a fundamental lack of supply of larger units and combined with strong demand this is resulting in upward pressure on rents."
Comments ()