MBL ends Morrisons’ contract early

DVD and CD supplier MBL yesterday said it has terminated its contracts with supermarket chain Morrisons five months early.
By The Newsroom
Published 7th Apr 2011, 09:45 BST

The group last month warned it would have to make about 300 redundancies after Bradford-based Morrisons, its biggest customer, axed its contracts after 14 years.

Morrisons accounted for about 78 per cent of the Lancashire-based firm’s sales.

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The contracts had been due to end in September but yesterday MBL said they have been terminated with immediate effect, by mutual agreement.

MBL added it is in advanced negotiations with Morrisons over stock it bought to supply the contracts and “anticipates an imminent conclusion”.

MBL was forced to put itself up for sale after losing the contracts to Canadian rival Cinram in a five-month tender process.

Morrisons switched suppliers as it wanted to take back control over the entertainment buying process, which was previously handled by MBL as part of its contract.

MBL also supplies Somerfield and the Cooperative supermarkets.

Related topics:MorrisonsBradfordLancashire