UK Jobs At Risk As Empire Stores Goes Up For Sale

Nearly 1,000 jobs could be lost after the French owner of Empire Stores, the home shopping firm, announced that it was to close the business.

Redcats UK, part of French retailer PPR, said that Empire Stores - which trades as empirestores - would be forced to cease operations within the next year unless a buyer could be found.

Redcats said that Empire Stores, founded in 1831, had suffered from competition from internet and cut-price retailers.

“The plan to cease operating Empire Stores is expected to be completed by January 2009 and could involve the loss of approximately 850 jobs at the company’s operations in Bradford and Wakefield,” Redcats UK said in a statement.

Empire Stores is now loss-making after reportedly seeing revenues halve over the past decade. The firm said that the credit squeeze, as well as low consumer confidence meant there was “no prospect” of a recovery in sales.

“It [Empire Stores] has been increasingly impacted by the rapid growth of high street value retailers, online traders and the availability of alternative financing options for credit, Empire Stores said.

“The sales decline has generated losses with no recovery prospects specifically in an environment made worse by a credit squeeze and fragile customer confidence.” A spokesman added that, for the time being, it would be “business as usual” for customers.

Stephane Roche, managing director of the firm, said: “We deeply regret having to implement these initiatives. However, this decision will create a viable platform for investment and development of our other direct and web-driven brands as we build a successful business for the long term.”

Redcats UK is one of the largest employers in Yorkshire. It is thought that there will be no job losses among the 1,700 workers at Redcats UK’s Bradford and Wakefield bases - where the Empire Stores staff are based - before April this year.

An unspecified number of agents around the country, who earn commission from catalogue sales, will no longer be required. Workers were told the news this morning, and Redcats UK said it was entering into a consultation process with unions over the job losses.

Workers at Empire Stores’ Yorkshire bases were told this morning that the company had been losing money for the past four years and had “no alternative” other than to close.

They were told that competition from budget high-street retailers such as Matalan and Primark, as well as the boom in internet retailers meant that continuing the business was “unsustainable” and could threaten Redcats’ other operations.

Representatives from Usdaw, the shopworkers’ union, met Redcats management today. Val Pugh, Usdaw national officer, said that the move was tragic news and that a large number of the staff had worked for Empire Stores for more than thirty years.

She said: If you have been there under 10 years you are a new starter. The majority of workers have been there for more than 20 years, with lots over 30 years. A lot of the staff have seen the business decline, but people are still stunned.

“This is tragic, really tragic news and a big hit on Yorkshire. This is a company that has provided for many, many years not only regular and good employment but really good terms and conditions. We are hoping as many of the jobs can be saved as possible.

“Formal consultations start with the company on Monday and we will be in regular meetings with them. We also hope that Redcats are going to commit and invest in their other brands.”

Empires Stores brand was taken over by French retailer PPR Group in 1991. The La Redoute catalogue launched in the UK in 1995, followed by Vertbaudet and Daxon in 1997.

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