PRH proposes to close distribution services at Grantham

Penguin Random House (PRH) UK is proposing to close its third-party distribution services operation at Grantham, with around 200 staff at risk of redundancy. 

PRH stressed that no final decisions had been made but if the plans go ahead the site will close in 2025. 

In an email to staff c.e.o. Tom Weldon said the cost of running the operations at Grantham had risen substantially due to “macro external factors, including supply chain challenges and economic shifts”.  

He continued: “While we are very proud of our work with our third-party partners, our findings have shown that it is not commercially viable for us to continue running this aspect of our operations. As a result, we are proposing to close this business—subject to consultation with impacted colleagues—and shut our Grantham site in 2025. 

“Unfortunately, the proposal means that a number of our colleagues will be at risk of redundancy. Today we have started a collective consultation with everyone affected.” 

PRH has provided distribution services to independent and smaller publishers since 1987 and has been at the current warehouse in Grantham since 2008. According to its website, it distributes for over 40 publishers; these include Canongate and Sweet Cherry. In 2019, PRH extended its lease on its Grantham Book Services distribution site until 2029.

Weldon said: “We are also in touch with our publishing clients to let them know of the proposal and what it would mean for them. We have always been advocates of a diverse publishing ecosystem and we continue to believe strongly that our industry—and readers—benefit from the critical role that smaller publishers play, both commercially and creatively. This business proposal does not change that position. 

“We will not be making a final decision on the proposal until after the completion of the collective consultation, which will not be for a few months. We will update you further once we have reached that point.”