Hundreds of jobs lost in triple whammy
HUNDREDS of North West jobs were lost today as a kitchen maker and a baker called in administrators and ailing retailer Woolworths axed support staff.
The Bernstein Group, based in Westhoughton, which was only bought out of administration by its bosses last year, slid into insolvency again today, with the loss of 140 out of 250 jobs.
Business advisory firm PricewaterhouseCoopers, which has been appointed to handle the administration, blamed the consumer spending slowdown, the slump in the housing market and the collapse of a major customer for the company’s demise.
Joint administrator David Kelly said the administration was “indicative of the pressures being faced by the housing market which is now beginning to impact on its suppliers”.
Sixty jobs are going at St Helens-based bakery John Pimblett and Sons, which appointed Paul Flint and Brian Green from KPMG Restructuring in Manchester.
The company, which was founded in 1921 by John and Mary Pimblett, had a bakery and 10 shops. The bakery has been shut down but the shops have been bought by a Yorkshire firm, saving 80 posts.
Paul Flint, director of KPMG Restructuring in Manchester, said: “The tough trading conditions currently experienced by retailers up and down the country, coupled with rising food prices, have unfortunately led to John Pimblett & Sons being placed into administration.
“While we are pleased to have saved approximately half of the jobs with the sale of the shops, it is with regret that we have had to close the Pimblett bakery with the loss of 60 staff.”
Meanwhile, the administrators of Woolworths revealed 70 job losses at a support base in Rochdale. A further 380 people will be made redundant in London.
Deloitte said there had been no redundancies in the high street stores or in Woolworths’ distribution operation and that it was still in talks with several parties to sell the business as a going concern.
Joint administrator Neville Kahn said: “Unfortunately, it has been necessary to make some 450 employees redundant out of a total workforce of over 25,000.
“These roles are in head office and support functions in London and Castleton. There have been no redundancies in the high street stores and distribution centres. Our expectation remains that stores will remain open beyond Christmas and that all staff in the stores will be paid in full.”
Woolworths’ retail and distribution businesses employ around 25,000 people. The offices affected by the job cuts employ more than 1,100 staff.
Woolworths, which has 815 stores, went into administration last week after struggling under the weight of £385m of debt.
