The restructuring plan being carried out at troubled discount fashion retailer Matalan will almost certainly lead to job losses, with all areas of the business (including the finance function) under threat, the company’s finance director has told Accountancy Age.
Phil Dutton, said that the consultation process would last 30 days and end on 20 July. He said each area of the business would be electing representatives to form consultation committees in order to brief staff on ‘proposed restructuring work’ towards ‘mitigating any job losses’.
However, he declined to comment on whether any senior board members’ positions would be in jeopardy.
‘The likelihood is that this will lead to job losses, but I can’t scale them at present.’
Dutton said that ‘some readjustments’ and a ‘reshuffle of board responsibilities’ would have to be made, as Matalan’s long-serving IT director, Nick Beighton, is leaving the company to join Luminar, the UK’s largest nightclub operator, as group FD.
The restructuring move is part of the focus on costs announced last month alongside annual results, Dutton said. Last month Matalan warned on the current year output with underlying sales sharply down in March and April. Matalan’s like-for-like sales fell 8.8% in the first nine weeks of the year.
Dutton added that ‘given market conditions’ the company was looking for ‘greater cost efficiencies’.
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