Job Losses and Business Closure - Well Done Boris You Fucking Clown

In the first 3 months of LOCKDOWN

MORE BUSINESS AND JOB LOSSES FOLLOWED

The UK has shed over three-quarters of a million jobs since the start of the coronavirus crisis,
with Britons earning less and working far fewer hours. This was just the beginning, more job loses followed.

The number of people claiming out-of-work benefits
also continued to rise in July, reaching 2.7m
more than double the pre-pandemic level.

Just a quick google search reveals the
devastating effect of the Lockdown.

We'll blame the Corona for the Lockdown Disastrous Results

ALDO

The UK arm of Candadian footwear chain Aldo went into administration in May.

Five UK stores have been permanently closed, according to the CRR, leaving eight surviving while the administrators seek new owners for the UK business.

It s not yet clear how many jobs could be affected.

SSE

More than 2,600 employees of energy supplier SSE are set to lose their jobs as new owner Ovo announced sweeping redundancies across its business.

BrightHouse (2000 PLUS)

Bertram Books

The book wholesaler, which was founded in a chicken shed in 1968, went into administration last week.

The Norwich-based company appointed Turpin Barker Armstrong as administrators.

According to the CRR, most of its 450-strong workforce were made redundant.

The original owner of the company, Kip Bertram, sold off the business in 1999. He told the BBC the collapse was "very sad for the staff, the city of Norwich and the customers".

Boots (4,000 jobs)

UK retailer Boots, known for its pharmacies, beauty retail and opticians will cut 4,000 jobs or about 7 per cent of its workforce.
It is closing 48 Boots Opticians stores and will have a 20 per cent reduction in the UK support office, parent company Walgreens Boots Alliance said in a statement.

Although Boots' Pharmacies remained open during lockdown, the company said that "footfall into the stores dramatically reduced."
"We recognise that today’s proposals will be very difficult for the remarkable people who make up the heart of our business, and we will do everything in our power to provide the fullest support during this time," said Boots UK managing director Sebastian James.

British Petroleum (10,000 jobs)

British oil giant BP announced plans to cut 10,000 jobs on June 8 due to the coronavirus crisis, which has slashed global demand for oil and in turn its prices.

In a company-wide email seen by Euronews, CEO Bernard Looney confirmed the job cuts, saying that most would be made this year.
He said: “We will now begin a process that will see close to 10,000 people leaving BP – most by the end of this year."

Though the email did not specify where the redundancies would take place, it said: “The majority of people affected will be in office-based jobs. We are protecting the frontline of the company and, as always, prioritising safe and reliable operations.”

British Airways ( 12,000 jobs)

British Airways announced at the end of April it would cut up to 12,000 jobs from its 42,000-strong workforce due to coronavirus' devastating impact on the travel industry.

The airline's parent company, International Airlines Group (IAG), said it needed to impose a "restructuring and redundancy programme" until the demand for air travel returns to pre-coronavirus levels.

Job losses could also occur at IAG’s other airlines, Iberia and Vueling in Spain and Ireland’s Aer Lingus, CEO Willie Walsh has warned.

Casual Dining Group - Bella Italia, Café Rouge, Las Iguanas (1,900 jobs)

The restaurant chain owner has fallen into administration, announcing an immediate loss of 1,900 of its workforce.

According to reports, a number of buyers are said to be interested in the separate chains, but they are not keen to take over all the 250 outlets.

Therefore, at least 91 restaurants will remain closed.

Centrica (5,000 jobs)

The energy company announced in June a "significant restructure" of its business model "designed to create a simpler, leaner Group".

The cost-saving measure should lead to a reduction of around 5,000 roles, half of which will come from management layers. The majority of the restructuring is to take place in the second half of 2020.

"I truly regret that these difficult decisions will have to be made and understand the impact on the colleagues who will leave us," Centrica CEO Chris O'Shea said in a statement.

"However, these changes we are proposing to make are designed to arrest our decline, allow us to focus on our customers and create a sustainable company," he added.

Co-op Bank to axe 350 jobs and close 18 branches

The Co-operative Bank has announced plans to close 18 branches and slash around 350 jobs, becoming the latest major UK firm to confirm mass layoffs during the pandemic.

The company blamed the Bank of England’s record-low interest rates, falling customer numbers in branches and “prolonged economic uncertainty ahead” for a cost-cutting drive.

The bank said it had begun consulting with staff and unions over proposal to cut staff numbers, with cuts expected to mainly hit middle management positions and head office roles. It said staff would be re-deployed where possible.

Debenhams

Debenhams confirmed it had formally entered administration at the start of April.

It is the second time the department store, which employs around 22,000 people, has gone into administration in the last 12 months.

The retailer had already announced the closure of 19 UK stores in January, but since April it has announced another 20 will not open.

However, as part of a restructuring, Debenhams has struck deals with landlords to keep 120 stores open, according to the BBC.

DW Sports falls into administration putting 1,700 jobs at risk

DW Sports, which was founded by former Wigan Athletic owner Dave Whelan, operated 73 gyms and 75 retail sites across the UK but announced plans to shut 25 of its stores last month.

EasyJet (around 4,500 jobs)

Britain's low-cost airline EasyJet has also announced it would be cutting jobs in the wake of coronavirus.

The company said 30 per cent of its workforce would be slashed, which amounts to about 4,500 jobs.

At the end of June, EasyJet said it was also considering closing three of its bases in the UK.

Harveys Furniture

The UK's second-largest furniture retailer was put into administration by its owners Alteri Investors on the last day of June - the same day as Benson's for Beds - according to the CRR.

The company, which has 105 stores and 1,575 staff, is reportedly looking to close 20 stores and 240 jobs were made immediately redundant.

Zelf Hussain, Peter Dickens and Yulia Marshall of PwC were appointed as joint administrators.

The company continues to trade and existing orders will be carried out, CRR said.

John Lewis ( 5,300 job cuts)

Meanwhile another High Street retailer John Lewis will close eight stores, which will affect 1,300 jobs.

The stores that will close are in Birmingham, Croydon, Heathrow, Newbury, St Pancras, Swindon, Tamworth and Watford.

The job cuts are a blow to the UK economy when just yesterday the UK's finance minister Rishi Sunak announced an up to £30 billion (€33.5 billion) plan to secure and create jobs across the country.

The plan included a new job retention scheme that will provide employers with a £1,000 bonus per employee who was furloughed and who remains employed through January 2021.

Johnsons Shoes

The 50-year-old shoe retailer fell into administration in May after being hit by the impact of the coronavirus pandemic.

Johnsons Shoes operates 12 stores under the brands Johnsons Shoes and Bowleys Fine Shoes.

The retailer has stores in Windsor, Newbury, Staines, Teddington, East Sheen, New Malden, Twickenham, Walton-on-Thames, Northwood, Richmond, Beaconsfield and Farnham.

All of the retailer’s 145 staff have been furloughed while the administrators seek a buyer to try and "secure jobs and get the best deal for creditors".

Laura Ashley

All the retailer’s high street stores are currently closed due to lockdown and 1,669 staff have been furloughed on the government’s job retention scheme.

Lee Longlands

The historic Birmingham retailer founded more than a century ago was placed into administration this month.

The high-end furniture chain has appointed financial services firm Duff & Phelps as administrator while it continues to battle the effects of the coronavirus pandemic and lockdown.

A statement from Duff & Phelps said the move was necessary to protect the retailer but reassured customers it was business as usual and that orders would be fulfilled.

Lee Longlands was founded in Birmingham in 1902 by Robert Lee and George Longland and they opened their first store at 304 Broad Street, taking advantage of its location next to the canal to bring in timber.

IT GETS WORSE!

By end-June 2020 more bricks-and-mortar retailers had gone into administration, putting more stores at risk and more employees under threat of losing their jobs, than in the whole of 2019. 2019 was described by some observers as 'the worst year for 25 years' for the industry .

· Please Note also: the figures given above for every year refer ONLY to UK failures and ONLY to UK retail businesses - so not to American or Australian corporations, not to restaurants, cafes and food services, not to U.S. department stores - some of which are mentioned on this webpage. The yearly totals in the Table above are intended to show the main trends applying to UK retailing, from relatively benign years where few companies go bust to perfectly horrid years like this one. So far (to July 2020) of the stores' at risk', 53% or 1,424 have been closed and 43.7% of 'at risk' staff have been made redundant. The equivalent figures last year were 36.9% and 20.6% respectively.

· Oliver Sweeney Trading, the retail arm of the prestige shoe company Oliver Sweeney Group, was placed in administration in mid-July. All its seven stores are closed as the company sees its retail future as online only. This administration does not affect the wholesaling and online arms of the business.

· Muji, the Japanese high-street homewares retailer, has applied for bankruptcy protection in the U.S. It has debts of $64m and the Covi-19 lockdowns in the UK and the U.S. have hit it hard. It won't be included in our UK figures, but, under U.S. law the corporation will be required to produce an exit plan to revamp the company. This may well have implications for UK stores. The stores continue to trade.

· Cardinal, the Yorkshire-based firm of shopfitters (outfitting or remodelling store interiors), went into administration in mid-July. One hundred and thirty-five staff amongst its 170 employees have already been made redundant. Their business has been hit by the pandemic. In addition their customers (ie the retailers) were unable to make firm commitments about work they needed in 2020, H2, into 2021. The impact of covid-19 upon retailers has meant that most companies are now unsure about the number, type and location of stores that they are going to need in 2021-2025.
The collapse of work for Cardinal is a symptom of the bloodbath on the high street.

· Soletrader, a footwear retailer established in 1962, went into a creditors' voluntary liquidation in mid-July 2020. Its assets including stock and brand names Sole and Soletrader were purchased by its owner, the Twinmar Group, and are now invested in a new subsidiary, Twinmar London. Most of the company's stores opened for trading in July, but eight shops have been closed. Soletrader's website is a separate entity and is unaffected by the liquidation.

· Peter Jones (China), a 50-year old crockery and gift business based in Wakefield, went into administration in mid-July. It had not opened after the lockdown eased. There were ten stores and 76 staff. The business is expected to be liquidated.

· Norville Group, a Gloucestershire-based firm of opticians and optical suppliers to the industry, went into administration early in June after selling its nine Norville Opticians' practices the previous week. Since then the former Norville laboratories, which were renowned for being able to produce lens to the very highest standard, have been acquired from administration by Inspecs, the new owener of the Norville Group, and continue to trade.

· Benson Beds, the beds and bedding business owned by Alteri, was put into pre-pack administration at the same time as Harveys (see below). Alteri bought the business out immediately and put £25m into the company to invest in its development. There are 242 stores and 1,900 staff. Bensons (at present) is seen as a much better business than Harveys, most UK bedding is made in the UK, it faces less competition from overseas operators and Alteri is likely to focus on improving its operations, while keeping Harveys Furniture stable. The company continues to trade and existing orders will be fulfilled.

· Harveys Furniture, the second largest furniture retailer in the UK, was put into administration by its owners, Alteri Investors on the last day of June. There are 105 stores, which have been struggling for some years, and 1,575 staff. The company is looking to close 20 stores and make 240 staff redundant. The company continues to trade and existing orders will be satisfied.

· T M Lewin, retailer of shirts and ties online and in 65 stores, went into administration on the last day of June after failing to find a buyer. The shops have not re-opened following the relaxation of the lockdown. The busines had been acquired from Bain private equity only last month (May). The new owners, SCP Private Equity, expect to close all the stores, making the company online only. Six hundred employees are likely to lose their jobs.

· Bertram Books, the Norwich-based book wholesaler, went into administration towards the end of June 2020 with debts now (Aug 2020) known to be £25m. Most of its 450 workforce has been made redundant. Bertrams was particularly important to smaller publishing companies. Changes in the book market in the last 20 years including the growth of online sales and dramatic price cutting, highly-promoted 'blockbusters', the growth of Amazon and direct-to-customer applications as well as e-books adversely affected Bertram Books' business model. But that is not all.

Sub-optimal decision-making by a succession of uncommitted owners have brought it down. Bertrams started in 1968 in a chicken shed in Elsie Bertram's garden as a project for her and her son. By 1999, when it was first sold, Mrs Bertram was 86, Bertrams was the second-largest book wholesaler in the UK, and it employed 700 people. In 2007, it was bought by the Woolworths Group and went into administration with the rest of the Company before being bought by Smiths News, the magazine/newspaper distributor of W H Smith. In 2018 it was bought by Aurelius, a German private equity group, who later sold Wordery, Bertram's online operation, to the Waterstone's book chain and Bertram's library division to an Italian business. The coronavirus pandemic, closing both libraries and bookshops, proved to be the final blow for Bertram Books. Was all this inevitable? Probably not.

· Intu Properties, the major property company that owns and manages some of the largest and best UK retail malls, went into administration on 26 June 2020. Many of its retail clients are not paying their rents and INTU's creditors are not as forebearing. It has total debts of £4.5bn, a merger with a European propery company came to nothing and it has failed to raise more capital. Its recent negotations with other parties, where it hoped to arrange a 'standstill agreement' with its lenders, led to no useful outcome, so it went into administration. Major sites include Lakeside, Glasgow's Braehead, Manchester's Trafford Centre, Nottingham's Victoria Centre and Norwich's Chapelfield.

This administration will be a major blow to the UK retail sector, although, coming after many other impossible-to-believe 'major blows', its significance may be less apparent. It may not be possible for the Administrators to run all the shopping centres without outside funding, although so far all sites have been kept open. It is still possible that many of their shopping centres will close unless a new potential buyer acquires some or all of them. Some observers who have used the lockdown to re-think their personal philosophy may rejoice at the decline of this bastion of consumerism. But the destruction of asset wealth in terms of commercial property, will adversely affect property prices, the stability of most retailers, pension funds, shares, unit trusts, tax revenue, job opportunities etc etc and bring home to the public the enormity of the slump we have managed to stumble into.

· Go Outdoors, the outdoor sports, walking, climbing, camping, riding and exercise retailer owned by JD Sports, wwnt into administration towards the end of June. It was immediately bought out of administration by J D Sports for £56.5m (pre-pack administration), enabling hte company to be reorganised. J D Sports has stated that it wishes needs to re-think the Go Outdoors business but does not expect large-scale redundancies and closures. There are 2,400 employees and 67 stores. Since the firm was bought by JD Sports it has lost £291m (to August 2019) and the massive losses caused by the coronavirus lockdown have only worsened the situation. In July, the Administrators estimated that unsecured creditors would receive only 1p in the £1.

· Lee Longlands, the Birmingham-based upmarket furniture retailer, went into administration towards the end of June to enable the company to restructure and improve cash flow. The company continues to trade and outstanding orders will be met. There are six stores, mostly in the Midlands. Lee Longlands was purchased via a management buy-out in 2015. The company started in Broad Street Bham as an antiques business in 1902.

· Poundstretcher Properties, a company connected to discount-chain Poundstretcher, is to be placed into administration as part of a CVA programme by 450-store group Poundstretcher to reorganise its store portolio, cut rents and reduce other costs. The Poundstretcher Group has argued that around 250 stores will close if the CVA is not approved by its creditors. Poundstrecher Properties holds the leases on only 23 stores and this will not affect the legal position or ownership of the group as a whole. Poundstretcher faces the same issues as the rest of the high street, compounded by the lockdown, now in its 85th day (it is really that long?).

· Oak Furnitureland, the specialist furniture store that started off on eBay, has gone into administration, and was immediately bought out of administration (pre-pack) by hedge-fund Davidson Kempner Capital Management. There are 105 showrooms and 1,491 empoyees. The business continues still to trade, but the new owner expects to rationalise the business, probably through the closure of some stores and reductions in staff.

· French-themed retailer, bread/coffee/restaurant chain Le Pain Quotidien went into pre-pack administration in mid-June. It has been bought out of administration by a new vehicle, BrunchCo21, believed to be linked to its former owner, Cobepa. Ten of its 26 outlets have been closed with the loss of around 200 jobs in stores and the closure of its head office. The new owners expect to negotiate T&C with the landlords of the remaining 16 properties, and the results may lead of course to further closures.

· Monsoon Accessorize, the womenswear and accessories chain with 181 stores, went into administration early in June. It is a private company owned by its founder, Peter Simon: it started as a market stall. Monsoon Accessorize was immediately bought out of administration by Peter Simon. Thirty-five stores are to be closed with 545 employees being made redundant. The business had 181 stores and 2,534 UK staff before administration. It is understood that Monsoon does not expect that every landlord will agree to the new conditions, but hopes to save around 100 stores and 2,300 jobs. The stores are based on careful, edited retailing which only encountered problems in the last decade. In 2019 the company survived a previous crisis through a large cash injection from its owner, the closure of 40 stores and a CVA that cut rents on three-quarters of its stores. The group's survival after the current crisis will also depend upon how readily shoppers will return to physical stores post-coronavirus and by how much their tastes and buyer behaviour will have changed in this new environment. Monsoon's international business is unaffected, with 49 stores and 966 staff outside the UK.

· Quiz, the Glasgow-based fashion group, put its physical stores division into administration in early June. Ninety-three head-office and warehouse redundancies have already been declared. The business wants to renegotiate rents for its 82 stores and the eventual size of the group will only be known, when this has been done. KPMG has been appointed to review the firm's options, which are likely to include store closures. There are 915 staff in the stores division. Quiz's online business continues unaffected, as are its 300+ concessions.

· Victoria's Secret, the UK arm of the U.S.-owned global retailer, went into administration early in June 2020 having made a loss now known (Aug 2020) to be £100m in the last financial year. The UK fashion trade has experienced a torrid three years and the coronavirus lockdown, which prevented 'non-essential' stores trading (though not online), has been the final hammer blow. Victoria's Secret has probably lost its original appeal: the aftermath of the Me-too campaign may have made the chain seem slightly tacky. There are 25 stores and 800 staff. The company sells ladies' underwear. The company is reported as looking for a light-touch administration, allowing them to restructure the business, reduce costs and possibly find a new owner.

· Aldo, a Canadian-based international chain of stores, went into administration early in May. This has led to the UK arm going into administration at the end of May. Five UK stores have been permanently closed, leaving eight surviving while the administrators seek new owners for the UK business. The UK network is obviously up for sale, but many of the stores are franchised and are not 'owned' by Aldo Canada. Aldo shoes, handbags and accessories are still available for purchase in the UK both online and in its 28 UK concessions (including Selfridges, Debenhams and House of Fraser). The Irish arm of Aldo has already gone into administration. The company and its brands (chiefly 'Aldo' and 'Call It Spring') are major international businesses, operating around 3,000 stores globally served by 20,000 staff. Apart from the UK, Aldo businesses are expected to reopen as each government permits in the post-coronavirus world. The main reason the company gives for its problems is: the world-wide closures of its stores caused by governments' attempts to limit the spread of coronavirus.

· DVF Studio, the luxury fashion company owned by Diane von Furstenberg, has gone into administration, citing 'coronavirus', and is closing its Mayfair store. The company has an online business as well as concessions in prestigious department stores, including Selfridges and Harvey Nichols. It announced earlier in 2020 that it was starting a subscription luxury service. The e-commerce business and concessions continue to trade.

· Antler, the luggage retailer which runs 18 stores and a concession, went into administration in mid-May. There are 194 employees: 164 of these have been made redundant. The Administrators announced in mid-July that they had successfully sold the brand name, Online business, stock and assets, but the stores remain closed and there was no news of their future.

· Johnsons' Shoes, also trading as Bowleys Fine Shoes, went into administration in mid-May. There are 12 stores, all in the South East of England. The 145 furloughed staff will retain their jobs as the administrators seek to reopen the businesses. The group was later acquired by Newjohn Limited, part of Daniel Footwear. Six stores were closed.

· Dawson's Music, one of the oldest stores selling musical instruments (est. 1898), went into administration early in May. There are six stores in Leeds, Manchester, Chester, Liverpool, Reading and Belfast. It is still opan and is hoping to be sold as a going concern. There are 75 staff. The coronavirus lockdown proved to be the last straw for a retail group that was already facing a decline in sales. There is also an Educational Division which supplies schools, colleges and universities. In late May, the chain was purchased by Andrew and Karen Oliver, who took over all the stores and retained the staff.

· J Crew, the U.S. fashion retailer with six UK stores, sought Chapter 11 bankruptcy protection at the beginning of May. It has 500 stores in the U.S., trades online, and owns the J Crew Factory and Madewell brands. It intends to continue trading online while it gives control of the business to its lenders who will cancel debts of $1.65bn (£1.3bn). It is unclear how this will affect its UK business.

· L K Bennet, the fashion retailer which went into administration in March 2019, is to extend its administration for another twelve months. The company expects to open seven stores on 15 June 2020 (when non-essential stores are allowed to start trading) with the remaining 10 stores to open at a later date.

· Oasis and Warehouse, two fashion retailers owned by Icelandic-Bank Kaupthing, went into administration in mid-April 2020, having failed to find a buyer for the group. All its 92 stores were closed, 2,300 staff made redundant and the 437 concessions terminated. The 13 stores and 29 concessions in the Irish Republic had already gone in into administration under Irish law: there were 248 staff in Ireland. The Oasis and Warehouse brands and e-commerce operations were bought by Hilco, which sold them in June to BooHoo, the successful e-commerce apparel business. BooHoo raised £200m in May to help it take advantage of 'opportuunities', and now also owns brands such as NastyGal, PrettyLittleThing, Karen Millen, MissPap and Coast. Concessions and stores in other countries will continue to trade. Oasis and Warehouse had been suffering recently from the problems common to most UK mid-range fashion businesses. The coronavirus lockdown - closing all its stores - made it impossible to continue operating and ended any chance of a sale to a business wanting the stores to continue.

· Debenhams, the UK department store group now owned by its lenders following administration in 2019, has appointed administrators once again to protect itself from its creditors. Creditors were considering using winding-up orders to get paid. Although the company has closed 22 stores this year and expected to close 28 in 2021, the new administration is likely to hasten the demise of many more of its outlets in the longer term. Although its online operations are supplying customers, all its stores are in lockdown. It has heavy debts of around £600m. The comapny is loss-making and without the sales revenue from its exisitng stores it is in deep trouble. Debenhams has closed its Irish division permanently, which has eleven stores, 958 staff and 300 concessions. Debs is also closing its Hong Kong and Bangladeshi subsidiaries.

· Spicers, the office-supplies wholesaler, employing 1,200 people started by John Spicer in 1796 ceased trading in April. It was originally part of the Spicer paper and stationery company and split in 1985. It built up a European presence, but the UK arm and the European operations were separated in 2011, Spicers being bought by Better Capital, the private equity firm controlled by John Moulton. When it went into administration its administrators were not able to sell it and the business was liquidated.

· Simply Scuba, an award-winning diving retailer based in Faversham, went into administration in June. Thirty-two jobs are at risk. SimplyScuba has won the Dive Retailer of the Year award for ten years in succession. The Simply Group also runs SimplyHike and SimplySwim. The Simply Scuba website continues to trade, with its new 500M Divers Watch on sale today for £109.

· Kath Kidston, the vintage-inspired fashion and accessories chain, appointed administrators early in April 2020. It has now announced that it will close its UK branches, concentrating on Asia, the wholesale business and online sales. The company - like many fashion retailers - has had problems in maintaining sales and profitability. Since 2018 it lost £27mn, resulting in its closing stores and cutting head-office staff. There are 200 stores globally. All 60 UK sites are to close, with only 32 of its 941 UK staff being retained. It will now operate in the UK as an online-only retailer. The company's owners, Barings Private Equity Asia, have bought it out of administration on a pre-pack basis, having previously tried to sell it. Finances were so poor towards the end that initially Kath Kidson announced that they would only be paying part of the wages owed to employees: they have now agreed to make payments in full, but a up to a week late. The company suppliers, including HMRC and clothing manufacturers, are owned £90m by the failed company.

· Autonomy Clothing, a small fashion chain with three stores, 100 concessions and 44 staff, went into administration towards the end of March 2020. It has been beset by the same problems as the rets of the industry, the lockdown being the last straw. All employees have been made redundant.

· Lombok, the aspirational furniture and furnishings business, went into administration at the end of March. It operates both online and offline and is best known for its teak products made mostly from reclaimed timber. It has experienced two pre-pack administrations before (2009 and 2011). All 43 staff have been made redundant.

· Brighthouse, the rent-to-own household goods retailer, appointed administrators at the end of March 2020. There are 240 stores and 2,700 employees. The administration does not affect customers that rent goods, as their obligations will transfer first to the administrators and then to any new owner. This controversial business mainly deals with low-income households and was fined by the financial regulator for mis-selling and 'unfair' interest charged as part of consumer transactions. The compensation it must pay to 250,000 customers is understood to cost £1m per month and its most-recent financial report (February 2020) showed showed corporate losses of £16m. The company was originally called Radio Rentals whose business was renting out first radios and later TV equipment: they guaranteed to keep rented electronic goods in good repair at a time when electrical goods would often break down.

· Laura Ashley, the fashion retailer with 155 stores, went into administration in mid-March 2020. The administrators permanently closed 70 of the company's outlets: 1,669 staff were furloughed and 677 staff continued working in the business with more redundancies announced in mid-June. Only 18 of its remaining stores have re-opened post lockdown, though this may not be ominous. Gordon Bros have been allowed to purchse the Laura Ashley brand and its archives, leaving the future of the stores, logistics and manufacturing in Britain and Ireland unresolved. The Pension Protection Fund is asking for another administrator to be appointed to ensure the protection of Laura Ashley shareholders. Laura Ashley has had problems for more than 20 years.

Administration comes after a long period of poor results from a retailer that had been a star in the 80s and early 90s. The post-2016 deterioration in fashion sales affecting most clothing retailers was certainly a factor, but the failure of the business to match modern consumer requirements meant it was difficult to see the purpose of the company. Latterly it had more success with its furnishing and homeware than fashion. The conoravirus epidemic early in 2020 led to a sudden drop in footfall and store sales, which finally prompted the company's move into administration. Gordon Brothers. a US-based restructuring corporation, bought Laura Ashley out of administration in late April.

· Kikki.K, an Australian-based retail group selling Swedish-designed stationery, has gone into voluntary administration as a result of the problems of Australian retailing plus the cost of its global expansion (now including Hong Kong, the UK, Singapore and New Zealand). There are up to five stores in the UK, three shops-within-shops in stores like Fortnum & Mason and Selfridges and an online business which, in Europe, seems now to be switched through to Australia. There are 100 stores globally. The Australian stores remain open, but the UK online business is currently uncontactable due to 'unprecedented shipping delays'.

. Homebase, the DIY chain, has returned to profit after its experiences first as Bunnings UK and then a large CVA case. It used its CVA to cut rents and close more than 70 stores. It is therefore quitting its CVA eighteen months early. CVAs have had mixed results when used by retailers, but this is one that seems to have turned up trumps for the business.

· Soak, a major online bathroom products retailer, went into adminstration at the end of February. The market is intensely competitive and Soak's revenue fell from £70m (2018) to £43m (2019). Its profit on the 2018 figures was only £2.9m. Price competition between online and bricks-and-mortar retailers has meant that few operators are making much of a profit, hence the decline of Soak and the collapse of other kitchen and bathroom retailers, such as Better Bathrooms.

· Bonmarché, the value-oriented clothing retailer that went into administration in October 2019, has now been purchased by Edinburgh Woollen Mills (its previous owner). It is being placed in the same operating division as Peacocks. So far only 200 stores have been acquired, leaving 70 stores in administration. A number of Bonmarché stores have 'closing-down' notices in their front windows and these are expected to disappear. When further information about Bonmarché is available, it will be shared here.

· T J Hughes Outlet Division has issued a notice of intended administration for its Outlet Division, prior to renegotiating their rents. Lewis's Home Retail Limited, a subsidiary of LHR Holdings (the master company for T J Hughes), owns eight stores, two of which have already been saved via agreed rent reductions. This does not affect the whole Group, but only outlet stores. More information as it becomes available.

· HonestJohn.co.uk, the online advice website for car owners, went into adminstration and has been bought by Heycar, an online retailer of used cars. The staff, IP and assets have been transferred.

· Ashbury Furniture, a large furniture and soft furnishings salesroom, went into administration in February, caused by constant road engineering on the M20 (making it hard to get to the showroom) and the impact of rent and rates.

· Ena Shaw, a producer and retailer of soft furnishings based in St Helens, went into administration in February 2020, closing its factory and store. There were 167 employees.

· Oddbins, the wine and drinks off-licence business of European Food Brokers, went into administration at the beginning of February. There are 56 stores, mostly trading as Oddbins or Wine Cellars: two have now closed. Employees number around 567. Less than one year ago 45 EFB off-licence businesses were sold or closed on the basis that they were no longer viable.

· Hearing and Mobility, a spcialist national chain of hearing and mobility stores, has ceased trading and administrators have been appointed. Hearing and Mobility (HHML) is a Northampton-based company founded in 2002 with 18,000 customers. It established a chain of 27 hearing and mobility stores throughout Britain, later focusing mainly on the Midlands and the South with 15 stores. Starting in 2016, the company closed many of its mobility stores to concentrate on hearing disabilities. The company rarely made a profit and by January 2020 had only four stores. After its stores had 'temporarily' ceased trading they were sold to two other companies trading in this vertical market. Amplify Hearing has acquired HHML hearing operations, assets and 76 staff, enabling customers to continue being provided with service.

· Hawkins Bazaar, a Norwich-based toy/games retailer with a focus on adult merchandise, went into administration in the latter days of January. There are 20 stores and 177 staff. The company went into administration previously in 2011. Weak trading in 2019 and a poor Christmas have led the firm's current problems. The stores will remain open while a buyer is found, but by mid-February were all to close.

· Houseology, a Glasgow-based ecommerce furniture business, has gone into administration after a doleful Christmas. Twenty-three staff have been made redundant. Bureau, its office-oriented associate business, contiues to trade and is not affected by Houseology's failure. Houseology was set up in 2010 and is perhaps best-known for being backed by famous names such as Terry Leahy, Mike Welch and Bill Dobbie. By the end of February Houseology's assets including IP had been acquired by competitor Olivia, part of the Moot Group. Moot Group started in 2018 and is targeting turnover of £20m by end-2020.

· Beales, a 22-store department store chain, went into into administration, having failed to find a new owner or additional finance in the latter end of 2019. At first, the company's stores remained open in the hope that a new owner could be found. They have all now closed. The loss-making stores in the Midlands and the South were closed suddenly when no new owner cold be found, and were followed a fortnight later by the remaining stores, which were mostly in East Anglia. The company had announced in December 2019 that it was in difficulties and needed refinancing. Beales was originally set up in 1881 in Bournemouth as the Fancy Fair and Oriental House, taking advantage of the then-current craze for Chinese-themed merchandise. Originally a strong independent department store, Beales had been buying other department stores for 25 years in order to gain scale. It bought Bentalls in 2002 and in the last eleven years has grown by acquisition through taking over small groups of ex-Co-op and small independent department stores, which were not in great shape when they were acquired. These stores were generally in smaller towns like Bedford, Keighley, Mansfield, Peterborough, Skegness, Yeovil, Spalding, Diss, Beccles and Wisbech . Losses rose from -£1.3m in 2018 to -£3.1m in 2019 and poor trading over Christmas made it essential to secure new funding. Beales employed more than 1,200 staff. Colliers International reported in January 2020 that Beales was paying £2.85m in business rates, £1m more than should have been the case.

https://www.retailgazette.co.uk/blog/2020/08/retailers-job-cuts-covid19-lockdown-uk-list/

Le Pain Quotidien

The bakery chain was sold out of administration in a pre-pack deal in mid-June.

The Belgium-owned chain's UK business was bought by a new vehicle, BrunchCo21, according to the CRR.

A total of 11 of its 26 outlets have been closed with the loss of around 200 jobs in stores and the closure of the UK head office.
The new owners are reportedly negotiating a deal with the landlords for the remaining 16 properties.

Lombok

The furniture company reportedly went into administration at the end of March.

The retailer, which operated online, has experienced two pre-pack administrations before - in 2009 and 2011.

All 43 staff were made redundant, according to the CRR.

Marks and Spencer (7,000 jobs)

In response to the "substantial uncertainty about market conditions and the duration of [COVID-19] social distancing measures," Marks and Spencer unveiled proposals on August 18 that would ax 7,000 jobs.

The British retailer said the job cuts — which will impact central and regional management, as well as store staff — would be carried out over the next three months. It added however that a number of new jobs will be created in online fulfilment.

"In May we outlined our plans to learn from the crisis, accelerate our transformation and deliver a stronger, more agile business in a world in which customer habits were changed forever," Chief Executive Steve Rowe said in a statement.

"These proposals are an important step in becoming a leaner, faster business set up to serve changing customer needs and we are committed to supporting colleagues through this time," he added.

Monsoon

The fashion chain announced today (June 10) it expects to cut 545 jobs from the business despite founder Peter Simon buying the chain out of administration almost immediately. A total of 35 stores are also expected to close across the UK.

The deal will transfer around 450 jobs to Adena Brands, owned by Mr Simon, which has promised to inject £15million into the business to allow the remaining stores to stay open.

Mr Simon will try to renegotiate with landlords to get a better deal on the remaining 162 store leases.

Mulberry (25 per cent of its workforce)

Even luxury fashion cannot catch a break from coronavirus. Mulberry, the UK brand known for its leather goods and costly handbags, said on Monday it would cut 25 per cent of its workforce.

It's expected most of the jobs will go in the UK, where the vast majority of its staff works.

Nissan (2,800 jobs)

The Japanese carmaker announced on May 28 that it would close its factory in Barcelona, which employs around 2,800 people.

Oasis and Warehouse Group

The company behind Oasis and Warehouse went into administration in April.

Auditing and advisory firm Deloitte was appointed as administrator and it has said all stores will close indefinitely and online sales will be stopped.

The fashion brands have been sold to restructuring business Hilco, according to the Guardian, in a deal which includes stock but not the 92 stores or 437 concessions.

Oliver Sweeney Trading

The bricks-and-mortar retail arm of the prestige shoe company Oliver Sweeney Group was placed in administration in mid-July, according to the CRR.

Ovo Energy (2,600 jobs)

Britain's second-largest energy supplier is to slash 2,600 jobs, "largely through voluntary redundancy over the course of 2020," it said in a statement.

The announcement, in May, came just four months after it acquired SSE Energy Service for £500 million (€555 million).

"Since the acquisition of SSE Energy Services, OVO has been planning the integration of the two businesses which would have always required changes," the company said.

"The impact of COVID-19 has now accelerated changing consumer behaviour with more and more customers going online and using digital tools. This has permanently reduced the demand for some functions and roles," it added.

Pret A Manger (30 shops)

Heavily-impacted by COVID-19 in terms of "cash flow" and "operating costs," the sandwich shop chain said in a statement seen by Euronews that it will close 30 outlets across the country, almost half of them in London.

Pret did not say how many jobs would be cut. The company employs around 8,000 people in the UK.

“When the coronavirus crisis hit, we said that our priority was to protect our people, our customers, and, of course, Pret. We confirmed it was our intention to do everything we could to save jobs," said Pret’s CEO, Pano Christou.

“Although we were able to do that through the lockdown, thanks in particular to the government’s vital support, we cannot defy gravity and continue with the business model we had before the pandemic. That is why we have adapted our business and found new ways to reach our customers."

Reach plc (550 jobs)

The UK's largest national and regional news publisher - which also owns the Daily Express and Daily Mirror newspapers - announced on July 7 that it is slashing 12 per cent of its workforce.

"Structural change in the media sector has accelerated during the pandemic," the group's CEO Jim Mullen said, adding that "to meet these challenges and to accelerate our customer value strategy, we have completed plans to transform the business."

"Regrettably, these plans involve a reduction in our workforce."

Renault (15,000 jobs)

French automobile maker Renault announced at the end of May it would axe 15,000 jobs worldwide as it tries to ride out the drop in car sales, which have plummeted even further due to coronavirus.

4,600 of those jobs would be cut in France. However, that figure may be lower since Renault secured a government loan of €5 billion and would in exchange restructure its factories.

Rolls Royce (9,000 jobs)

The UK-based jet engine maker said that the pandemic's impact on the aviation industry had forced the company into "difficult decisions to see our business through these unprecedented times."

Over a sixth of the company's 52,000 strong global workforce is to be cut as part of its "major reorganisation".

According to the Unite, 3,375 UK staff will lose their jobs. The union described the announcement as "shameful opportunism".
"This company has accepted public money to furlough thousands of workers.

Unite and Britain’s taxpayers deserve a more responsible approach to a national emergency.

We call upon Rolls Royce to step back from the brink and work with us on a better way through this crisis," Unite assistant general secretary for manufacturing Steve Turner said.

Ryanair (about 3,000 jobs)

Budget airline Ryanair said it would cut 15 per cent of its workforce globally - about 3,000 jobs - after the pandemic grounded flights.

Chief executive, Michael O’Leary said the measures are "the minimum that we need just to survive the next 12 months."

O'Leary took a 50 per cent pay cut for April and May and has now extended it until the end of March next year.

Scandinavia Airlines (5,000 jobs)

While Scandinavia Airlines (SAS) also announced temporary job cuts in March, a month later it said 5,000 jobs—almost half the total number of employees—will lose their jobs permanently.

Schindler (2,000 jobs)

The company, which manufactures escalators, moving walkways, and elevators worldwide, announced on July 24 that due to the impact of COVID-19, and "to preserve its competitiveness", is going to cut 2,000 jobs globally.

It follows a reported 12.1% contraction in "order intake in the first half of 2020".

Swissport (4,556 jobs)

Aviation services company Swissport said it could cut 4,556 jobs in the UK and Ireland, becoming the latest victim of the coronavirus pandemic as it continues to wreak havoc on the airline industry.

Swissport Western Europe, which operates at London airports Heathrow and Gatwick, said in a statement that it had to reduce its staff size to survive the crisis.

The company, which hires more than 64,000 people globally, told Euronews it was inevitable staff in Europe will also be made redundant — but did not say how many jobs were at risk.

TM Lewin

The retailer of shirts and ties went into pre-pack administration in June, according to the CRR.

The firm had recently been bought by Stonebridge Private Equity through its subsidiary Torque Brands, with the new owner saying that the future of the entire retail sector was facing a "very real threat."

The retailer is to close all of its UK stores and around 600 workers will lose their jobs after the firm said it was going online-only in a bid to save the 120-year-old brand.

"The Torque team has worked to assess all available avenues for the business model going forwards, but having done so, has formed the view that TM Lewin is no longer a viable going concern in its current format," it said.

Tui (8,000 jobs)

Anglo-German travel firm Tui announced on May 13 it would cut 8,000 jobs worldwide.

In a half-year financial report, it said the pandemic was “unquestionably the greatest crisis the tourism industry and Tui has ever faced.”

In March, Tui was granted a loan of €1.8 billion by the German government to help see it through the pandemic. Obviously, that money didn’t go into saving jobs.

Victoria's Secret

The UK arm of the luxury lingerie retailer fell into administration this month, putting more than 800 jobs at risk.

The chain has 25 shops in the UK, which are currently closed in line with government lockdown rules.

Virgin Atlantic (3,000 jobs)

The airline has announced it will cut more than 3,000 jobs in the UK and end its operations at Gatwick Airport.

Cath Kidston

The retro fashion chain will not reopen any of its shops when the lockdown ends after calling in administrators last month.

However, the owner of Cath Kidston has secured a deal to buy back the brand and its online operations, but this does not include bricks-and-mortar shops.

The closure of stores will lead to the loss of around 900 jobs, according to the Guardian

Airbus (15,000 jobs)

Airbus said on June 30 it is to cut 15,000 jobs as it faces “the gravest crisis this sector has ever experienced”. This represents a 1% reduction in the company's workforce worldwide.

This makes the outlook worse for the European plane maker, which said in May it could cut up to 10,000 jobs amid the coronavirus travel slump.

Around 5,100 jobs will be cut in Germany, 5,000 in France, 1,700 in the United Kingdom, 900 in Spain and 1,300 at the group's other sites around the world.

Airbus said in April it would cut the number of planes it built by a third as airlines cancelled or delayed orders as flights have been grounded.

Do Not Despair

With life as bad as it is right now! Thing will get better...Lessons will be learned, those responsible won't go unpunished. And in the mean time, with Life 'Slowing Down', you'll have plenty of opportunity to re-access your life, and maybe, just maybe, if you're vigilent, Life will slowly improve, and maybe, even be better than pre-lockdown.