2,000 jobs at risk at Greater Manchester Shop Direct sites

Shop Direct is a leader in digital commerce

Online retailer Shop Direct announced today that it is to close three sites in Greater Manchester which will affect nearly 2,000 jobs.

It is anticipated that the proposed closures will impact 1,177 permanent staff and 815 agency staff.

The Liverpool-based online retail giant announced its move at the same time that it revealed plans to create a new distribution centre in the East Midlands, which is expected to create 500 jobs.

It said the decision follows an 18-month review into the three sites in Chadderton, Shaw, and Salford.

Oldham Council this afternoon expressed its shock at the proposals and vowed to work with Shop Direct staff facing redundancy.

The review concluded that the centres do not meet its “operational ambitions”.

Shop Direct confirmed that redundancies are anticipated as a result of the site closures, which it said will commence from mid-2020.

Derek Harding, the interim group chief executive of Shop Direct, said the group, which comprises online products such as Very and Littlewoods, decided to announce news of the closures now to give employees the best opportunity to prepare for the change.

He said: “This is a tough day for the business and we know how difficult this news will be to hear for our teams in Shaw, Little Hulton and Raven.

“However, these proposals are necessary for our future and to enable us to continue to grow and meet rising customer expectations.”

He added: “We take very seriously our responsibilities to our colleagues, many of whom have been with us for a long time and who work tirelessly to deliver for our customers.

“We are working alongside Usdaw, our recognised trade union, and will listen carefully to what they have to say.

“We’ll also work closely with local authorities and community leaders to make sure this process is carried out as fairly and sensitively as possible for our colleagues.

“We’re announcing this now to give our colleagues the best possible opportunity to prepare for the change.

“Over the next two to three years we’ll be partnering with local and national organisations to provide our colleagues with tailored advice and training, including career skills, access to financial planning and vocational courses to support re-training.

“It’s also our plan to offer apprenticeships in in-demand skills across our existing operational sites.

“Our priority is to provide a fair outcome for our team and we’ll do everything we can to support colleagues through this transition.”

Meanwhile, Oldham council said it is shocked and disappointed that workers are set to lose their jobs at the centres in Shaw and Chadderton.

It said its priority now is to support all those affected by the closures.

Helen Lockwood, the council’s executive director economy, skills and neighbourhoods, said: “This announcement has come out of the blue and we feel terrible for all those affected.

“The news that a major employer plans to leave is a blow to the borough.

“We are keen to have discussions with the company as soon as possible in order to find a solution that supports our local community.

“Our Get Oldham Working team are ready to offer our help and support to staff.”

She added: “We will work to try and find the affected workers new jobs, but we’ll also be providing practical support such as help with CVs and interview practice. We’d urge anyone who will be affected to contact the GOW team.”

The GOW Team can be contacted on 0161-770 4674 or at employability@oldham.gov.uk

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