Nightmare comes true as Woolworths axe 450 jobs

Woolworths axe 450 jobs

The nightmare has come true for Woolworths staff as hundreds woke to news that they are losing their jobs.

Administrators announced that the 450 people who were hanging on by their fingertips have now been made redundant from the Castleton depot on Royle Barn Road, as well as another branch in London.

Rochdale Online understands 70 jobs have gone from Rochdale.

The high street giant, which has been crushed by debt, has been trying to scramble out of administration since its announcement last Thursday.

The redundancies do not affect Woolworths stores, and there have been no redundancies at Entertainment UK Ltd (EUK), the wholesale distributor of entertainment products, which is also in administration.

Neville Kahn, Joint Administrator and reorganisation services partner at Deloitte, said: “Unfortunately, it has been necessary to make some 450 employees redundant out of a total workforce of over 25,000. These roles are in head office and support functions in London and Castleton. There have been no redundancies in the high street stores and distribution centres. Our expectation remains that stores will remain open beyond Christmas and that all staff in the stores will be paid in full.”

Job Centre staff will be attending both sites to provide support and advice to employees who have been made redundant, and the Insolvency Service’s Redundancy Payments Service has put together a special team to quickly approve claims for employee entitlements.

Neville Kahn added: “The stores and distribution centres will continue to trade as normal, but with a simplified core structure supporting them going forward. The Administrators, supported by management, are still actively seeking a purchaser for the business as a going concern, with discussions being held with a number of interested parties. We are working hard to ensure that any sale of the business, in whole or in part, will preserve jobs.

“We have today launched Woolworths’ Biggest Ever Sale, which is complementary to and will not adversely impact upon our efforts to sell the business. We are extremely grateful to the staff and management for their continued support at this difficult time. We would also like to thank the Job Centre and Insolvency Service for their cooperation and help.”

Woolworths and Entertainment UK were placed into administration on 27 November 2008. Neville Kahn, Nick Dargan and Dan Butters of Deloitte, the business advisory firm, were appointed as Joint Administrators.

Councillor Mohammad Sharif, cabinet member for regeneration on Rochdale Council, said: “Woolworths has been an important company in Rochdale for years, we have a good relationship with them and have assisted with the recruitment of many staff. 

"We want to help as much as possible and will work closely with our partners to ensure a comprehensive package of support is available to all the staff affected. This could involve one-to-one employment advice sessions, practical support in searching out vacancies and preparing for interviews. 

"I am confident that, by working together, we will be able to offer every assistance possible to these workers to find alternative employment. It is important that these people and their skills are retained in the borough.”