A Tyneside warehouse operator is poised to create 40 new jobs on the back of a six-figure investment package.
The Storage Place Ltd (TSP) has secured £400,000 in a funding round co-led by Maven Capital Partners, The Finance Durham Fund, established by Durham County Council, and overseen by Business Durham, and the North East Development Capital Fund, supported by the European Regional Development Fund. Both funds are managed by Maven and the deal includes £200,000 from each fund, which will trigger expansion of the business in County Durham, opening a new facility to more than double its capacity and create the new jobs.
Gateshead based TSP operates warehouses across the UK and has over 500,000 sq ft of UK fulfilment space. The business was originally founded as a warehousing and distribution firm for heavy industry and automotives in 2002, but the rise of e-commerce has seen it shift its focus to e-retail order fulfilment. The business, which is run by Michael Meredith, executive chair, and Paul Griffiths, managing director, specialises in services from the management of stock from suppliers, through to order processing and delivering to customers. It also offers software integration, which connects with a range of channels and services, such as Amazon, Magento and Shopify, and works with an extensive network of carriers including Royal Mail, DPD, Parcel Force, DX, DHL, TNT, Palletline and Evri.
Read more: Kromek expecting 'substantial' revenue growth
Latest figures from the ONS show that internet sales now represent 25% of all retail sales in the UK, which has driven the demand for e-commerce fulfilment services, both in the UK and worldwide, with the global e-commerce fulfilment market expected to reach $168.7bn by 2028.
Michael Vassallo, investment director at Maven, said: “The Storage Place is a fast-growing and highly profitable business in an exciting space. As e-commerce and Amazon remain as popular as ever with consumers, Paul and the team have strategically developed the business into a reliable, cost-effective order fulfilment service provider operating in a market with exponential growth. This investment is an opportunity to back a great local business with the added benefit of significant economic development for County Durham and the wider North East.”
Paul Griffiths, managing director of Storage Place, said: “We are delighted to have secured this investment from Maven to help us grow our business, expand our regional operations and create more jobs for the area. Both Michael and I are local to the region and excited to expand even further across the North East and support further job growth.”
Coun James Rowlandson, portfolio holder for resources, investment and assets at Durham County Council, said: “We are delighted to welcome the Storage Place to Peterlee. In the County Durham Inclusive Economic Strategy, we recognise the importance of productivity and the Storage Place is an excellent example of how companies can differentiate themselves from the competition by investing in the latest systems and technology.
"Through the team at Business Durham and the Finance Durham Fund, it is our aim to encourage good business practices and support businesses with the most potential for growth in the county. We encourage more businesses looking to invest in the county to follow suit and access the funding opportunities and support available.”
READ NEXT
- Private equity investors Foresight Group launch Newcastle office
- Tolent collapsed owing £46m to more than 1,000 creditors, documents show
- Bamburgh based Calibrate Group set for growth after acquisition by global giant RSK
- Newcastle's hedgehog lab acquires York's Netsells following £6.3m investment
- Read more North East business news here
