Musgrave To Cut 80 Jobs From UK Business
Published on Jul 7 2014 2:50 PM in Retail
Musgrave is planning to cut around 80 staff from its UK business, as it seeks to turnaround the underperfoming business, according to a report in The Grocer. The cuts are expected to include head office and supply chain personnel.
According to Peter Ridler, the newly-appointed managing director of Musgrave GB, the move is a "necessary step and immediate first step in Musgrave's turnaround plan."
In May, Musgrave Group posted a 3% fall in sales in its UK operation in the year to 31 December, and announced a €131 million write down of UK assets.
Last month, Musgrave chief executive Chris Martin told Checkout that the losses in the UK came about as the retailer allowed standards in its Londis operation to "relax".
“We relaxed the rules when it came to service standards, branding and basic purchasing loyalty," he said. "Why? Because the belief was we could bring in retailers and then shift them to those brand standards. We didn’t, they became unprofitable, and the losses increased.”