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Saturday, 4th September 2010

Bosses' jobs pledge as axe falls on Burnley Shop Direct

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Published Date: 05 February 2010
BURNLEY'S Shop Direct will not be saved from the axe – but bosses have promised jobs at other centres.
More than 400 workers were left devastated when bosses announced last week that the home catalogue company – one of the largest employers in Burnley – will close its doors after a 90-day consultation.

Jobs will be offered to 350 of those workers, but at the company's Bolton and Preston offices, after Shop Direct confirmed it will push ahead with closing its Kingsway call centre.

Chief executive of Burnley Council Steve Rumbelow Burnley Council leader Coun. Gordon Birtwistle and the Labour parliamentary candidate Coun. Julie Cooper travelled to Liverpool for talks with Shop Direct chief executive Mark Newton-Jones.

Job Centre Plus and the North-West Development Agency also attended the talks which focused on why the decision was taken and what support could be offered to Burnley workers.

Coun. Birtwistle said: "I left the talks depressed that Burnley is losing one of its biggest employers and the terrible knock-on effect this will have for those workers, their families and the town's economy.

"This is a big company leaving Burnley in the middle of difficult economic times which is very distressing. I was reassured the company will take their responsibilities seriously at this traumatic time and we will be watching that they do.

"We're also getting directly involved where we can and are already speaking to one or two companies about possible recruitment opportunities."

Coun. Julie Cooper, attending on behalf of the town's MP Kitty Ussher, said the talks were positive but she was sad the jobs would be lost to Burnley forever. She added the company had promised to help with training for the workers.

Chief executive Mr Rumbelow said the decision was not made because of the performance of the Burnley site but the shift from telephone shopping to online shopping.

He said: "They looked at fixed overheads, in particular the cost associated with the building they operated from, and it seems that has driven the decision to close Burnley."

Job Centre Plus and the NWDA will work with the company to support staff while offering support on new employment and re-training.

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  • Last Updated: 05 February 2010 10:16 AM
  • Source: n/a
  • Location: Burnley
 
 

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