More on KentOnline
Home Kent Business County news Article
HUNDREDS of shop workers in Kent could face unemployment following an announcement that Co-op plans to close or sell all of its department stores within the next two years.
A loss of more than £4 million profit from stores across the UK last year has forced executives to make the announcement.
The future of employees is uncertain as a result of the plans to stop trading or sell off stores in Ashford, Chatham, Dartford, Gillingham, Sittingbourne and Strood.
The closure of the Gillingham High Street store is definite. It is among the 10 biggest loss-makers nationwide and will close in February, 2006. Thirty-three members of staff will lose their jobs.
The other stores are among 26 that will be put on the market for sale but will close in February, 2007 if they have not been sold. Those 26 stores employ 491 full-time and 379 part-time staff.
Angry workers are vowing to fight for their jobs with the help of shop workers’ union USDAW.
Sharon Ainsworth, spokesman for the union, said: "Our members are very distressed at hearing this news. Many of the staff affected are long-serving and loyal Co-op Group employees.
"We will be urging the Co-op Group and any new owners to do everything they can to retain the highly-skilled workforce. Ongoing consultations will be taking place with the Co-op Group to secure as many jobs as possible."
Paul Harris, deputy chief executive of the Co-op Group, says the decision was made after a reviewing the level of business in each store.
He said: "The review concluded that a complete exit from the sector, disposal of the stores and the re-investment of the proceeds into our core businesses was the only commercial option.
"This was a very difficult decision to make but at the end of the day, a necessary one. We operate in fiercely competitive markets and this business is a continuing major drain on our resources.
"We will do everything we can to help those left without jobs find alternative employment."
The group revealed that Anglia Regional Co-operative Society is considering acquiring a number of the stores and a decision is expected later this month.
A Home Store in Tunbridge Wells is one of two outlets testing a new non-food retail format. It is unaffected by the decision.