Marks and Spencer have plans for a new wave of job cuts, with more than 300 posts to go to the stores across the country, according to documents leaked to the disposal of the guardian.
The high street chain, which last week warned that its decision to close 100 stores does not necessarily mean an end to her attempts at restructuring, consults on layoffs among managers in order to optimize their business.
A quick guide to the health of UK retail at
Stores that went bankrupt 2017-18
Toys R us: 180 shops are 3,000 employees, collapsed on 28 February. Owe 15 million pounds in VAT, in connection with the 1 March.
Workshop: 200 electronics and gadgets stores, established in 1972, also failed on 28 Feb.
Warren Evans: the manufacturer went into administration in early February.
East: a fashion brand with nearly 50 outlets, folded in January.
Juice case: history of brands, including Elizabeth Emanuel and Joe Bloggs went in January.
Multiyork: furniture chain with 50 stores went into administration in November.
Feather & black: bedroom furniture and bedding specialist with 25 points fell into administration in November.
Retailers under pressure
New look has debts of more than 1 billion pounds and has lost some of its credit insurance which protects suppliers if the seller is bankrupt. For 10 months before Christmas, sales fell by 11%, but losses hit £123m height. The company intends to close 60 stores and change its ranges of fashion, but faces struggle to win back young buyers.
House of Fraserwith the Chinese owner, Sanpower, had to stump up £ 25 million to see the store at Christmas and its debt is estimated as undesirable. The retailer is trying to reduce the size of its stores by 30% and asked landlords to cut rents.
The Debenhamsin the 178-store chain, for over 200 years, to kill one of the four leaders and with account closures to cut costs. He warned that revenues were lower than expected level of sales, profits also declined as a result of having to reduce prices to match competitors.
Photo: Tony Margiocchi / Barcroft Images/Barcroft media
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Retailer combat readiness this year announced a series of layoffs in connection with the closing of the shopping center in Warrington, adding to the dismissal of the stores were closed.
Along with other high street retailers, marks & Spencer was hit by to go to online stores together with rising costs, including a business course during the fall in consumer spending.
In may, it reported a steep drop in annual profit and said the clothing and food sales fell. The bill of £514.1 m for business restructuring, providing additional pressure on their income.
The new layoffs follow the configuring of the company that found incompatible governance structures similar stores and duplication of management functions.
Marks and Spencer chair for shareholders: ‘we are on a burning platform
Other major UK retailers, including Sainsbury’s and tesco, have made similar steps to reduce the role of the office in their shops as they try to keep the cost competitive market.
The consultation documents the public guardian that, although sales activity in the stores of marks and Spencer fell by 7.5% in the last two years, administrative expenses have increased.
“This has led to reduced profitability of the store affects our ability to trade our existing stores and the opening of future stores efficiently,” – said in the documents.
In response to 351 layoffs were proposed in different roles.
The retailer said it plans to reduce store commercial and operational managers 115 and backing 182 heads of departments in the same business sectors.
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In addition, this will reduce the number of visual managers who are preparing store displays, on 54.
M&s confirmed these proposals and stated that the affected employees were told.
The press Secretary said: “M&s is transforming and it is a tough but necessary decisions to ensure our stores in support of future business and provide the best service to our customers.”
Last week, the company’s Chairman, Archie Norman, has given strict warning for shareholders attending the annual General meeting of M&s, saying the business was “on a burning platform.”