M&S cuts 1,000 jobs as fashion sales dive

PasturesNew

High street fashion retailers were the first big losers of 2009 as Britain returned to work yesterday to face the worst employment prospects in a generation.

Marks & Spencer will announce massive job losses tomorrow after dire Christmas trading – nearly a thousand posts will go in stores and several hundred more from head office and support functions.

Debenhams and Next are also expected today to unveil their worst Christmas performances in recent history. The fashion chains Principles, Oasis, Karen Millen and Warehouse – all owned by Mosaic – have had an emergency restructuring team sent in from Deloitte. The stores employ about 5,000 staff whose jobs will be at risk unless a new lender is found to refinance the business.

Waterford Wedgwood, the china and glassware company, went into receivership yesterday, threatening nearly 2,000 British jobs.

Adams, which went into administration after Christmas, shed another 850 staff by closing all 111 children’s clothing shops and Passion for Perfume, a chain of 46 stores, collapsed with the loss of all 185 staff. The last 197 Wool-worth stores will close today, taking its total losses to 27,000, while Monsoon Accessorize is facing a revolt from suppliers after it asked manufacturers to cut prices by 5 per cent.

Sales over Christmas at Marks & Spencer are thought to have fallen by 8.5 per cent once new stores are taken out of the equation. M&S, which last year made workers’ redundancy packages less generous, has cut investment recently to reduce its £3 billion debt.

Unemployment is now rising at a faster rate than during the 1990s recession. This week’s job news will pile more pressure on the Bank of England to cut interest rates on Thursday from 2 per cent to a 314-year record low.
The dire news from the high street came as Gordon Brown and David Cameron tried to seize the initiative on the economy. The Prime Minister vowed to support and maintain jobs while attacking the Conservatives as “socially divisive” and “economically mistaken”. Mr Cameron announced schemes to relieve pressure on savers. He said that he felt like “shaking the Prime Minister” until he admitted that government plans were failing.
Unions, meanwhile, fear that ministers are dragging their feet over a bailout of the car industry. It is understood that no date has been set for talks despite a formal request before Christmas. Unite said that 70,000 jobs were at risk.

Representatives from the industry, including Jaguar Land Rover, have been discussing an aid package with ministers since October but no details of support have emerged.

Auto manufacturers have been hit by falling sales due to the economic downturn but are also struggling to raise capital because of the credit crunch. They have asked the Government for loans and loan guarantees to stem the losses.

Jaguar Land Rover said yesterday that it had axed 2,000 positions last year. The company, which employs 15,000 people, cut agency and contract workers to reduce its costs. Jaguar has also shut down its factories for a month over Christmas

http://business.timesonline.co.uk/tol/business/economics/article5455026.ece

Cat695

And it now starts to unfold

Airwolf1

I did post this, but it hasn't appeared so I'll post again!!

I popped into M&S yesterday morning, hardly any customers about. All the hype and buzz about getting xmas pressies etc cheap in the sale has gone. It'll be a downward trend now I reckon.

neverdespairgirl

I chucked out most of OH's socks over the weekend, so that'll help M & S this week when he buys some more.

dad-of-4

i may just break my valentines day pressie strike and get a little something for the missis this year.
womens underwear is the only thing ive ever rated them for.

Airwolf1

Actually I find socks from Peacocks are cheaper, and they have the stay fresh thing with them too!

mvengemvenge

To quote a comment in the paper...

"This is no ordinary P45. It is a Marks and Spencer's P45, complete with a crisp white envelope and in delicately detailed print."

RichyRich

mvengemvenge wrote: »

To quote a comment in the paper...

"This is no ordinary P45. It is a Marks and Spencer's P45, complete with a crisp white envelope and in delicately detailed print."

...and no union representation for the employee to ensure their termination is lawful

amcluesent

Can't be good news for the ex-Woolies staff. After all, if you are recruiting are you going to take a well-spoken, tidy ex-M&S person or a 'ladette' from Woolies?

Ian_Griffiths_Halifax

neverdespairgirl wrote: »

I chucked out most of OH's socks over the weekend, so that'll help M & S this week when he buys some more.

I have a draw full of odd socks. Could you send them over here to see if I can make a pair?

MRSTITTLEMOUSE

I'm quite shocked at how things are beginning to escalate.I've never seen it happen so quickly or quite so harshly in other recessions.
At this rate we are'nt going to have much choice on high street left.