335 jobs lost at Vergo Retail
Administrators announce closure of nine stores
Administrators at collapsed department store owner Vergo Retail have announced the closure of nine stores, resulting in the loss of 335 jobs, less than a week after their appointment.
Sarah Bell and Steven Muncaster, partners at MCR and joint administrators of department store business Vergo, warned that a further 600 jobs were at risk.
Bell said that the nine stores were deemed to be loss making and are expected to close within the next four weeks, however a buyer for the stores will not be ruled out until they finally stop trading.
The outlets - in Sunderland, Hexham, Witham, Clacton-on-Sea, Stowmarket, Plymouth, Colchester, Norwich and Dovercourt - will follow Lewis's of Liverpool in shutting down after a financial review of the group.
Lewis's, Robbs and Joplings were formerly owned by Owen Owen Ltd, and were acquired by Vergo Retail in May 2007 following Owen Owen's collapse into administration.
Bell said: "Following a financial review of the business it was apparent it could not continue to trade in the short term without implementing immediate cost saving measures.
“Regrettably, this means that 335 positions have been made redundant with effect from today.”
She added: “There is an opportunity for interested parties to come forward and rescue the remaining business as a going concern.”
Vergo has been trading at a loss throughout this year.
The joint administrators said they have been in regular dialogue with all stakeholders including trade unions and local government authorities to discuss the immediate prospects of the company and that of the employees.
No comments:
Post a Comment