Oak Furnitureland to cut 160 jobs amid store closures
Oak Furnitureland is preparing to permanently close 27 showrooms, putting 163 employees at risk of redundancy in the latest blow for the UK retail industry.
The furniture retailer, which was bought by investment firm Davidson Kempner Capital Management last month, said adverse trading conditions after the coronavirus lockdown had forced it to close stores.
All non-essential stores were ordered to temporarily close in March during the UK coronavirus lockdown.
Oak Furnitureland said the business had stabilised since stores reopened in June, but the retail environment remained challenging.
Oak Furnitureland, which has 105 stores in total, has launched consultations with landlords and the 163 employees on notice of redundancy.
The move follows several other UK retailers that have announced redundancies in recent weeks due to the pandemic. John Lewis announced earlier this month that it would permanently close eight stores, putting 1,300 jobs at risk.
Boots has also revealed plans to cut 4,000 jobs.
Oak Furnitureland chief executive Alex Fisher said: “The current proposal to close some showrooms forms part of a company-wide review that we are undertaking as a business. We are committed to driving forward a plan for our future growth, and although this has been a difficult decision, it is the right one for the business in these uniquely challenging times.
“We are confident that the decision will ensure we remain a competitive and dynamic choice for our customers.
“I would like to say thank you to all of my colleagues in every department who have been endlessly committed and patient during this process. Those employees affected have been informed and will be fully supported by our HR teams.”