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Department store group Debenhams is the latest British retailer cutting a raft of jobs from its head office.
The firm told MarketWatch hundreds of workers were informed on Thursday they were being made redundant, as the retailer fights for survival.
But one affected Debenhams worker, who spoke to MarketWatch, claimed management had told her a much higher figure of 3,000 store and head office staff members were affected on Thursday — a number that Debenhams denies.
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The source said she was warned on Wednesday that job cuts were imminent and received a call on Thursday morning when she claims she was told the 3,000 staff figure.
“I’m gutted,” she said. “There are not many opportunities out there at the moment and I’m concerned how I’m going to survive financially.”
Debenhams said the figure is closer to “a few hundred” but that the total number of employees who work in its head office is 3,000.
The high street chain, which has collapsed into administration for the second time in a year, had already furloughed many of its 22,000 employees and closed 142 stores due to government requirements under lockdown.
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The redundancies will be a big blow to Britain’s retail sector. The source said the company wasn’t offering any financial cushion beyond the statutory redundancy.
Earlier this month the firm, which dates back to 1813, said it was shutting some stores, placing what is thought to be a further 700 jobs at risk, after failing to agree rent terms with a landlord.
It used to trade out of over 240 stores across 27 countries selling a mix of own brands, international brands and concessions. It had said last year it was closing 20 stores.
A spokesman for Debenhams said preparations to reopen the vast majority of its stores from June 15 are well under way, following “the successful conclusion of lease negotiations” on 120 stores.
“In the context of a retail industry undergoing profound change, the management team is working on the future shape of the group, with a view to seeking an exit from administration as a going concern,” he said. “With a leaner and more flexible operating model, Debenhams will have the ability to adapt to what are likely to be fundamental shifts in the future trading environment.”
