THOUSANDS of jobs were at risk last night as the crisis on the high street deepened.
In a grim day for retailers, department store TJ Hughes called in administrators and scores of store closures were announced by Thorntons, Jane Norman and Carpetright.
The wave of closures sparked calls, led by Middlesbrough South and East Cleveland Labour MP Tom Blenkinsop, for an emergency cut in VAT to try to boost consumer spending.
The failure of Liverpoolbased TJ Hughes has placed 4,000 jobs at risk. The cutprice department store chain, which has stores in Middlesbrough and Newcastle, has already been rescued once this year.
In March, it was the subject of a management buyout.
Management said they hoped a buyer could be found even at this late stage.
A further 400 jobs were lost at fashion chain Jane Norman with the closure of 33 out of 94 stores and Thorntons signalled it will close at least 120 outlets over the next three years as leases expire.
The troubled confectioner will also consider the future of an additional 60 shops in a move that could put up to 1,125 jobs at risk.
Carpetright, which reported a 70 per cent slide in fullyear profits, said it will close more stores to try to weather the consumer downturn.
The latest losses, coming after the collapse of Habitat and Moben kitchens parent HomeForm, prompted calls for Government help.
Mr Blenkinsop said: “These events will hit customers and – more directly and brutally – the jobs of loyal staff members at all these shops.
“Our high streets are dying before our eyes. The squeeze on wages and the threat of job losses are eroding consumer confidence, and this is intensified by the emergency Budget hike on VAT rates.
“It is time that the wisdom of cutting VAT is put into practice by this Government, no matter how distasteful it may be to them.”
Maureen Hinton, of research firm Verdict Retail, said many retailers had recently received their quarterly rent bill, which had proved “the final nail in their coffin” and caused a spate of casualties.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel