Redundancies at 20:20 Mobile

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Handset distributor 20:20 Mobile has confirmed it has made a number of redundancies as part of its drawn-out integration of its old 20:20 Logistics, Dextra Solutions and Caudwell Logistics units.

20:20 maintained it had reached agreement with affected staff over the decision, most of whom volunteered for it.

20:20 Mobile UK managing director James Browning (pictured) said “Successful distribution businesses must always ensure they operate on as efficient a cost base as possible.

“Following the successful merger of the businesses last year we have made a small reduction in headcount, which fortunately was largely done via voluntary redundancy.”

20:20 Mobile employs around 1,500 staff across its international operations, with the majority in the UK.

In the UK, around 60 jobs went in January, most from its warehouse operation. At the time, it was its second restructure in six months.

20:20 Mobile merged its 20:20 Mobile handset distribution business, its Dextra accessories unit and its Caudwell Logistics division in August last year to afford the business improved operating efficiencies and to consolidate its portfolio of services.

The move followed its financial restructuring in July last year, which saw the banking syndicate that put up the debt for parent Doughty Hanson’s original purchase of 20:20 Mobile in late 2006 write down net debt to £92 million and receive a 45 per cent equity stake in the business.

Doughty Hanson injected £15 million capital into 20:20 Mobile as part of the deal. The banking syndicate, led by RBS, took a 45 per cent stake in the business, and 20:20 Mobile’s management team also took 10 per cent as part of the restructuring.

 

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