High street redundancies: Which retailers have cut jobs in the pandemic so far?
Retailers have made redundancies due to the pressure of the pandemic on trading. (Getty Images)
Thousands of high street jobs have evaporated during the coronavirus pandemic, as retail chains have fallen under the pressure of lockdown restrictions on trading.
The UK high street, which was already struggling before the pandemic, is set to look very different when shoppers return after lockdown following high profile collapses that have cost many retail workers their jobs.
Household names such as Debenhams, Topshop and Dorothy Perkins have been major casualties during the pandemic and will disappear from the high street – although the brands will live on online – resulting in the loss of thousands of jobs.
Card Factory given month to save shops from closure
The retailer said it expected to report a pre-tax loss of about £10million for the year
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Card Factory has been given an extra month to negotiate with lenders to avoid breaching banking covenants on a £200 million loan.
Card Factory given one-month waiver over loan breach
Card Factory has been given a one-month extension to negotiate its debts (Steve Parsons/PA)
Card Factory has been given an extra month to negotiate with lenders to avoid breaching banking covenants on a £200 million loan.
Bosses had warned the company was set to breach the loan rules by the end of the month following a plunge in sales during the coronavirus pandemic.
But the greetings card retailer said on Friday that its lenders will provide a waiver to the expected breach until February 28 while talks continue.
In a statement, Card Factory said: “We remain in constructive discussions with our banks, and have agreed a process to continue to explore a range of potential solutions, with scope for further extensions to the waivers as this process continues.”
Paperchase has secured a rescue deal which will preserve around 1,000 jobs and the majority of stores after tumbling into administration.
However, the high street card retailer said 37 of its 127 stores will shut their doors permanently despite the move.
Administrators revealed that newly formed company Aspen Phoenix Newco, which is backed by Permira Debt Managers, is to take control of the retailer.
Paperchase hired administrators from PwC after it saw sales slide on the back of significantly lower footfall amid coronavirus restrictions.
The group said the rescue deal will retain its position in the UK retail landscape, “albeit in a smaller and more streamlined manner”.