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Debenhams to cut 2,500 more jobs amid pandemic

17
Aug '20
Pic: Debenhams
Pic: Debenhams
Struggling UK department store chain Debenhams recently said it will cut 2,500 more jobs as it struggles to survive the pandemic. This is in addition to the 4,000 announced since May, which implies it will have cut a third of its staff. The cuts will be primarily across its UK stores and distribution centre, but it said no new shops were scheduled to close.

The Union of Shop, Distributive and Allied Workers (USDAW) reacted angrily to the news, saying legal procedures had not been followed.

By law, mass redundancies have to be subject to a consultation period. USDAW is preparing to legally challenge the decision on behalf of the affected employees.

Debenhams fell into administration for the second time in a year in April, and its administrators, FRP, said consultation had not been possible as the retailer was insolvent and had ‘limited’ options, according to UK media reports.

A spokesman said: "Those affected by redundancy will take no particular comfort from this, but the steps taken are in response to an unpredictable and challenging trading environment and aim to ensure the future viability of the business, while also meeting wider statutory obligations."

Earlier this year, the retailer said 20 of its stores would remain permanently closed because of the impact of the pandemic.

Fibre2Fashion News Desk (DS)


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