Debenhams is to cut a further 2,500 jobs in its department stores and warehouses in the latest blow to hit the high street. The beleaguered retailer, which currently employs 14,500 people, is reducing the number of shop assistants in its stores as trading remains slow despite the reopening of 124 of its stores after lockdown. The latest round of redundancies comes on top of 4,000 job cuts the group has made since it went into administration in April for the second time in a year . Hundreds more jobs were lost in December and January when the group closed more than 20 stores. The group has shut more than 40 stores in the past year. Now the chain is understood to be scrapping the roles of sales manager, visual merchandise manager and selling support manager as part of the restructure as well as some distribution centre roles. The 242-year-old retailer said the reopened stores were trading better than expected, but the store chain still needed to cut costs. “The trading environment is clearly a long way from returning to normal and we have to ensure our store costs are aligned with realistic expectations,” Debenhams said in a statement. “Such difficult decisions are being taken by many retailers right now, and we will continue to take all necessary steps to give Debenhams every chance of a viable future.” Shopworkers union Usdaw said the latest cuts were “devastating news for staff” who were informed via a conference call and without consultation, which is required by law. Dave Gill, Usdaw national officer, said: “Yet again it is appears that the taxpayer will have to pick up the bill for what is owed to sacked staff because administrators are deliberately flouting the law. “Debenhams staff not only face the trauma of losing their job, but also face being forced to seek justice through a lengthy tribunal process. This area of law requires review because it is riddled with injustices for both workers and taxpayers.” A spokesperson for the joint administrators at advisory firm FRP said consultation was “rarely possible in insolvency where the options available are limited and the administrators must consider their own duty to creditors”. High street businesses have been closing outlets and slashing job numbers as trade remains slow despite the end of lockdown. Last week the books-to-sandwiches store WH Smith said it was cutting 1,500 jobs while fashion chain M&Co shut 47 stores with the loss of just under 400 jobs. That came in a bruising week during which travel agent Hays, retailer DW Sports, Pizza Express and the electronics retailer Dixons Carphone all announced major job losses. Department stores have been hit particularly hard by changing shopping habits as well as the coronavirus crisis. John Lewis and House of Fraser are both closing stores while Beales collapsed into administration. Last month, Debenhams put itself up for sale in a last-ditch attempt to prevent a fall into liquidation. Mike Ashley’s Frasers Group, which owns Sports Direct and House of Fraser, is thought to be interested in buying 30 stores. Meanwhile, 264 jobs are to go at Debenhams supplier Baird Group, the firm behind Ben Sherman in the UK and Suit Direct, after creditors approved a restructure which will close 18 stores and a warehouse.
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