NETE under ‘organisation and structural review’

Middlesbrough-based North Eastern Tyre and Exhausts (NETE) is conducting an “organisational and structural review” just a couple of months after being bought by Stapleton’s Tyre Services. While local newspapers dramatically reported that “the fate of 360 staff hangs in the balance” and the firm refused to rule out redundancies, one spokesperson told Tyres & Accessories that no decisions have yet been made and the review is focusing on the efficiency of support roles within the newly-acquired company. T&A understands that sales and logistics positions are not currently being looked at.

A report in the local Evening Gazette newspaper appeared to confirm this when it quoted an unnamed employee as saying: “payroll, HR, marketing, finance, and IT roles [are] all in the firing line.”

Referring back to the purchase of NETE by Stapleton’s, which was officially confirmed on 14 March, but actually took place on 28 February, the Evening Gazette quoted managing director Gavin Marshall as saying: “It means we can accelerate our plans to strengthen the NETE brand and expand further into new territories. This is great news for everyone involved. They (Stapleton’s) are very much of the opinion that there is very little to fix within North Eastern Tyres.”

NETE achieved ‘solid performance’ according to its full year 2010 results. In the year to 30 September 2010 NETE saw its turnover rise 12.3 per cent to £58.6 million while pre-tax profits also increased, from £1.41 million to £1.47 million.

NETE was founded by Netta and Fred Darcy in 1970. A number of the Darcy family still hold various positions within the business.

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