Liverpool

TJ Hughes warehouse closes making 116 redundant

TJ Hughes in Liverpool
Image caption TJ Hughes has been trading in Liverpool since 1912

The distribution centre for discount department store chain TJ Hughes has closed and 116 members of staff there have been made redundant.

Administrators Ernst and Young said the warehouse was closing immediately for economic and organisational reasons.

John Gorle, from Usdaw, said staff were told just after midday on Friday and were "shocked and devastated".

The firm went into administration on 30 June after it suffered from a loss in "credit insurer confidence".

A statement from Ernst and Young said: "Unfortunately, 116 employees of the 132 employees based there have been made redundant with immediate effect.

Continuing to trade

"The redundant employees are being provided with assistance to recover their statutory payments for redundancy and payment in lieu of notice together with information on how to claim jobseekers allowance and other benefits.

"All 56 stores of the company are continuing to trade whilst a sale of all or part of the business remains ongoing."

GA Europe bought the chain's £10m debt last week and is overseeing clearance sales at the 56 TJ Hughes stores.

It has said a number of stores may close for good.

Mr Gorle said: "Staff received absolutely no notice of their redundancy and their union were informed by a telephone call from the administrators.

"However this does not constitute the meaningful consultation required by law.

"Alarm bells will certainly be ringing at the company's remaining stores and head office and I am seeking urgent talks with the administrators to ascertain their true intentions for the rest of the business."

The homeware, menswear and beauty retailer was founded in Liverpool in 1912 by Thomas Hughes.

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