Iceland Seafood CEO Bjarni Ármannsson has cited the double whammy of Brexit followed by Covid-19 as being behind the company’s decision to disengage from the UK market.
This follows a warning a couple of months ago that the company was reviewing strategy, and the board has now taken the decision to to exit the UK market from a value added perspective.
Iceland Seafood UK invested in operating facilities in Grimsby and merged its operations from Bradford and Grimsby into this location in a move that was completed in early 2020, just before Covid-19 hit.
‘The renovation and installation of the factory was very much affected by Covid and later Brexit along with difficulties in overall operations,’ he said, and has been quoted as saying that the UK import and export environment post-Brexit has become highly cumbersome.
The company is reported to have incurred hefty losses of around £8 million since setting up this operation in Grimsby.
‘Iceland Seafood has now decided that it plans to exit this market from a value-added perspective and has mandated MAR advisors to support the process. Although it has been concluded that the UK operation is not a strategic fit for Iceland Seafood any more, the excellent facilities and strong management team in Grimsby can be a great addition to other companies in the sector.’
The premises in Grimsby are reported to be for sale.