Concern over job losses as EG Group moves HQ from Blackburn to the US
The move could see around 400 jobs lost at the company’s Blackburn headquarters, sparking concern from local councillors and community leaders.
A former Mayor of Blackburn with Darwen has urged the council to do everything it can to minimise job losses and support workers after EG Group announced plans to move its headquarters from the borough to America.
Councillor Suleman Khonat, who represents Shear Brow and Corporation Park, spoke out after the council’s growth lead, Cllr Quesir Mahmood, said he expected only 300 of the 700 jobs at the firm’s Waterside site in Blackburn to be retained.
The EG Group, founded by Blackburn brothers Zuber and Mohsin Issa, is relocating its HQ to Charlotte, North Carolina, with UK operations shifting to Bolton. Both founders have stepped down as co-chief executives, handing leadership to New York-based Russ Colaco, though they remain on the board.
Cllr Khonat, Mayor of the borough in 2022/23, said:
“A lot of affected workers live in my ward and this is a major blow to the community, and I am sad to see so many jobs lost.
The council needs to do all it can to assist in retaining the remaining jobs.
This could impact the local economy big time.
The company has to make tough decisions to stay afloat.
Restructuring might help them adapt, and the workers need help transitioning to new jobs.
The loss of jobs can have a significant impact on workers’ welfare, affecting not just their income but also their overall wellbeing.”
Cllr Mahmood said:
“We are sad to see some parts of the EG business leave the borough.
While this represents a change for the company, our understanding is Blackburn will remain a key base for EG Group, with around 300 staff continuing to work from the borough.
This is a significant and ongoing commitment to our borough and one we greatly value.”
The £35 million headquarters off Haslingden Road, opened in 2020, currently employs around 700 people. It’s understood that EG On The Move, Zuber Issa’s new venture, and engine oils firm Duckhams, will continue to operate from the Blackburn site.
However, concerns remain about the future of the building and the wider impact on the town. Conservative councillor Paul Marrow described the announcement as a “massive blow” and warned the site could become a “white elephant.”
Cllr Saj Ali, growth spokesperson for 4BwD, added:
“The news was a huge blow for the borough.”