Jobs worry hangs over high street chain employees

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Saturday, January 28, 2012
Profile image for Western Gazette - Yeovil

Western Gazette - Yeovil

Jobs at a number of high-street chains in Yeovil are under threat.

Clothing retailer Peacocks was last week forced into administration, casting doubt over the future of 9,600 jobs nationwide.

The Cardiff-based company, which has a store on Middle Street, operates 611 shops across the UK.

The Yeovil store currently has 15 employees, but workers face an uncertain future, with the retailer facing reported debts of £240 million.

However, the Yeovil store will remain open for the immediate future, pending any further announcement from administrators, KPMG.

Chris Laverty, joint administrator and restructuring partner at KPMG, said: “Like many retailers Peacocks has suffered from tough economic conditions, which have seen its customers reduce their spending on the high street.

“This factor, combined with a surplus of stores and high overheads, led to the business becoming financially unviable in its current form.”

Administrators for Peacocks are now seeking a buyer.

Women’s clothing shop Bonmarché, previously owned by The Peacock Group, has since been bought by private equity firm, Sun European Partners, but workers’ futures remain uncertain.

The future of Bonmarché, which employs seven staff in its Yeovil store, has been safeguarded, but the deal will lead to 1,400 job losses and 160 store closures nationwide.

The company is expected to announce which stores will be permanently closed in the upcoming days.

Peacocks is the latest high street store to face financial insecurity, with toy and novelty gift chain Hawkin’s Bazaar entering administration on December 30.

The Yeovil store, which employed eight people, closed its doors on January 16, along with branches in Croydon and Stratford.

Jason Livingstone, spokesman for Yeovil Chamber of Trade and Commerce, said: “Any loss of retailers in Yeovil town centre is bad for all – not only for the poor employee who suffers the direct implication of unemployment, but undoubtedly the local economy too.

“Although Yeovil is faring better than other areas of the country, the reality is that when a national retailer closes, even if the local store is doing well, all stores close and local jobs are lost.

“Empty shops do nothing to add to the shopping experience for those stores left trading.

“Despite the high street fighting back and experiencing record shopper numbers for Yeovil in December, local success is not bigger than the national picture, witness these closures.”

David Mills, manager of the Quedam Shopping Centre, was optimistic about the next 12 months and offered encouragement to those looking for work in the retail sector.

He said: “In the Quedam we have started 2012 in a better shape than 12 months ago.

“Therefore, although there will be more retailers going into administration nationally this year, I am optimistic 2012 overall is going to be an improving year for the retailing sector, particularly in Yeovil. When any retailer closes, very sadly their team members will be out of work in the short-term.

“However, the big advantage for anyone trying to find work in the retail sector is that their skills are transferable to other retailers.

“In Yeovil alone, there must be well over 100 retailers and the retail sector here employs well over 2,000 people.”

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