Pharmacy wholesaler and franchiser Sigma Healthcare will close its distribution centre in Invermay in the second half of this year in response to the loss of its supply contract with Chemist Warehouse.
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A spokesperson for Sigma said five jobs would be lost, and the distribution centre was the smallest in its network.
Staff members were made aware of the closure earlier this month, the company said in a statement.
Sigma will also close warehouses in Shepparton and Newcastle as it attempts to claw back $100 million over two years. A total of 300 employees and 200 agency staff would lose their jobs, out of 1300 employees.
The closures were described as a "difficult decision".
Sigma chief executive officer Mark Hooper said the decision was made after a "diagnostic review" of the company's operations to identify efficiencies.
The company's full-year net profit dropped 33 per cent for the year ending January 31. Its shares dropped 45 per cent after it lost the pharmaceutical supply contract with Chemist Warehouse.
Sigma Healthcare franchises include Amcal, Guardian, Discount Drug Stores and Chemist King.
Adam Holmes
From Adelaide to south-west Victoria, Bendigo to Tasmania, I've provided in-depth stories in politics, environmental affairs, issues facing disadvantaged communities, legal affairs and much more. Contact me at adam.holmes@examiner.com.au or on Twitter at @adamholmes010
From Adelaide to south-west Victoria, Bendigo to Tasmania, I've provided in-depth stories in politics, environmental affairs, issues facing disadvantaged communities, legal affairs and much more. Contact me at adam.holmes@examiner.com.au or on Twitter at @adamholmes010
