Ocado warehouse blaze leads to 7% shares drop
A fire which broke out at Ocado’s distribution warehouse in Andover has led to a 7% drop in the company’s shares.
An Ocado statement on the London Stock Exchange said the site was providing approximately 10% of its current delivery capacity, and as a result of this incident there would be “a constraint on [its] ability to meet growing customer demands”. It added that there will also be a reduction in sales growth until it can “increase [its] capacity elsewhere”.
However, the online grocer brand said it does have “comprehensive insurance” for the property, stock and equipment on site, and for business interruption losses.
Over 200 firefighters from Hampshire Fire and Rescue Service (HFRS) were involved in tackling the fire that broke out at 2.44am on 5 February. HFRS declared the fire a “major incident” due to concerns over the presence of pressurised refrigerants on site. As a result, the police conducted a limited evacuation of the immediate area on Wednesday (6 February) evening.
Ocado said on Twitter that it was “very sorry for those who have had to move from their homes tonight”, and added that it was “doing what [it] can to help” and was “working closely with the emergency services”.
Trade union Usdaw also confirmed that employees would still be paid for the hours they were rostered to work, and added it will “continue [its] dialogue with the company on the longer term implications and provide members with the support, advice and representation they need at this difficult time”.
