London (AFP)
The British department store chain Debenhams will cut 2,500 jobs in its stores and distribution centers, due to the lasting impact of the pandemic on its activities, a spokesperson told AFP on Tuesday.
"We have successfully reopened 124 stores and their activity is above our expectations. At the same time, the market environment is clearly far from returning to normal and we need to ensure that our costs are aligned." the group argued in a statement.
The job cuts mainly concern managerial positions.
The sign, whose origins date back to the end of the 18th century, filed for bankruptcy in April in order to preserve its liquidity and avoid dismantling while its activity was stopped by containment measures linked to the coronavirus.
Debenhams then decided to place the majority of its more than 20,000 employees on short-time work, but continued to offer its activities online.
The pandemic has weakened a little more a chain which was already experiencing serious financial difficulties, suffering from a drop in attendance at its brands in the face of competition from online sales as well as rents that had become too expensive.
These job cuts announced on Tuesday are a further blow to the trade sector with an increase in social plans.
Physical stores, department stores and restaurants are hit hard by a drop in attendance due to the health crisis.
Many companies are also worried about the planned withdrawal at the end of October of the partial unemployment scheme put in place by the government at the height of the crisis to protect jobs.
© 2020 AFP