Jobs fears as high street chain on brink of collapse

Jobs fears as high street chain on brink of collapse

21 October 2020

KEY government departments have been urged to take immediate action to save the jobs of staff at two of Downpatrick’s high street stores as speculation over their future intensifies.

The Edinburgh Woollen Mill Group — which owns the Peacocks and Jaeger brands —  has filed a notice to appoint administrators, with fears that 260 Woollen Mills stores across the UK could close with the loss of thousands of jobs.

It is being suggested that up to 21,500 jobs are at risk at Edinburgh Woollen Mill Group which also owns Jaeger, Austin Reed and Jane Norman, as the retailer teeters on the brink of administration.

The group, which has about 1,100 UK stores, has filed a notice of intention to appoint administrators to secure a rescue package.

City analysts believe that the deal would exit Peacocks’ worst-performing stores and could also see Edinburgh Woollen Mill close its stores as the latter chain’s reliance on tourists and elderly shoppers faces a bleak short-term future during the pandemic.

While it is understood that a number of Peacocks stores may remain open, it has not been confirmed if that will include the one at the Ballydugan retail park in the town.

Baroness Margaret Ritchie and Downpatrick councillor Dermot Curran hope that both local stores can remain in business.

Lady Ritchie has urged Stormont economy minister Diane Dodds and her communities counterpart Carál Ní Chuilín to do all they can, explaining that she is “gravely concerned” about reports of a   “blanket closure” of both Edinburgh Woollen Mill and Peacocks outlets.

She continued: “I understand that as yet no exact date has been given for closure apart from closing down sales notices and have asked both Stormont ministers if they could indicate what notice was given by the ownership of both stores that they were going to close their operations. 

“Other questions which I have posed include what discussions took place with the ministers and their respective departments prior to the decision to close?”

Lady Ritchie is also keen to ascertain what measures will be put in place to assist employees to find other sources of employment, what funding support packages are available.

She added: “I have also tabled a parliamentary question in the House of Lords urging ministerial assistance for staff who will lose their jobs during this difficult economic period with all the associated problems of the pandemic.”

Cllr Curran said many businesses are finding it extremely difficult at the moment and the latest lockdown restrictions impacting on pubs, restaurants, cafes and hotels represents another blow.

He added: “Despite the current situation many businesses find themselves in, there are very few empty shop units in Downpatrick town centre. It is important this continues and my appeal to people across the district is to continue supporting local businesses which are at the backbone of our community, providing jobs and supporting families.

“The current economic situation is brutal and I hope that everyone can ride out the latest restrictions that have been imposed, tough as they are.”

However, Cllr Curran said he is all too aware that for some in the hospitality sector, further restrictions is the last thing that they need.

Cllr Curran added: “At this time and in the run-up to Christmas I hope that all steps will be taken to save jobs across the retail and hospitality sectors across our district as they are pivotal to our economy. I also hope that it’s not too late save the jobs of Edinburgh Woollen Mill and Peacocks staff.”