Jobs at risk as two major businesses announce closures (From Echo)

Jobs at risk as two major businesses announce closures

5:40pm Thursday 7th March 2013 in News By Chloe Chapman

UNCERTAINTY surrounds jobs across south Essex after two major firms announced store closures.

Holiday firm Thomas Cook- which has branches in Billericay High Street, Basildon’s Eastgate Centre and Southend High Street- revealed plans to close 195 of its 1.096 stores.

The decision to scrap 2,500 jobs, 16 percent of its 15,500 workforce, comes as bosses attempt to cut costs after suffering a £590million loss in the last financial year.

Thomas Cook has also sold off hotels and reduces its airline fleet as part of the overhaul.

Chief executive Peter Fankhauser said: "It is never easy to make decisions that impact directly on our people, but we also owe it to our customers to shape the business effectively and ensure that, when they book their holiday with us, our administrative costs are as low as possible. As we improve and develop our online capabilities, maintaining a strong presence on the High Street is an important part of our omni-channel strategy. Even after these changes we will still have one of the largest retail networks in UK travel.”

Jobs at Dreams Beds are also under threat as the future of 96 of its stores hangs in the balance.

After the furniture superstore fell into administration, company Sun Capital Partners brought 171 of its branches, saving 1,600 jobs.

The 96 remaining stores are expected to remain open until their future is decided.

Bosses have not confirmed whether stores in Lakeside, Southend Airport Retail Park and Basildon’s Westgate Shopping Park will be affected.

Tony Ball, leader of Basildon Council, said: “It’s extremely worrying news. In Basildon we are always celebrating new businesses but at the same time we are concerned about major high streets closing.

“It must be dreadful for the staff with such uncertainly about their futures, and that is of course one of our main concerns.

“Basildon is a great place for businesses so we just have to hope that they decide to keep the stores here open.”