Pret a Manger is to axe 30 stores putting 1,000 jobs at risk
Pret a Manger is to axe 30 stores putting 1,000 jobs at risk as it becomes it becomes the latest victim of Britain’s High Street bloodbath during the coronavirus crisis
- The UK coffee chain is looking to ‘reduce headcount across remaining UK shops’
- Pret said this was ‘to reflect lower footfall, rental costs and new safety measures’
- It said that Covid-19 had hit trading, meaning it had to make a ‘difficult decision’
- Pret reopened 339 of its 410 stores across UK, with the remainder to stay closed
Published: 05:06 EDT, 6 July 2020 | Updated: 06:09 EDT, 6 July 2020
Pret a Manger is set to axe 30 stores putting 1,000 jobs at risk as it becomes the latest victim of Britain’s High Street bloodbath.
The coffee chain is looking to ‘reduce headcount across remaining UK shops to reflect lower footfall, rental costs and new safety measures’.
It said Covid-19 has seen sales plummet by 74 per cent, meaning it had to make a ‘difficult decision’.
Pret is the latest high street victim of the virus, following drastic cuts at numerous other stores including John Lewis, Harrods, Upper Crust and Bensons for Beds.
The coffee chain is looking to ‘reduce headcount across remaining UK shops to reflect lower footfall, rental costs and new safety measures’
Pret Chief Executive Pano Christou said: ‘When the coronavirus crisis hit, we said that our priority was to protect our people, our customers, and of course Pret. We confirmed it was our intention to do everything we could to save jobs.
‘Although we were able to do that through the lockdown, thanks in particular to the government’s vital support, we cannot defy gravity and continue with the business model we had before the pandemic.
‘That is why we have adapted our business and found new ways to reach our customers.
‘It’s a sad day for the whole Pret family, and I’m devastated that we will be losing so many employees.
‘These decisions are not a reflection on anyone’s work or commitment. But we must make these changes to succeed in the new retail environment.
‘We will be supporting our leavers to find new positions through a number of initiatives.
‘Our goal now is to bring Pret to more people, through different channels and in new ways so that we can continue to provide great jobs and opportunities to our remaining employees.’
He added: ‘While Pret may look and feel different in the short term, one thing I know is that we will come through this crisis and have a bright future if we take the right steps today.’
Pret has reopened 339 of its 410 stores across the country, with the remainder expected to stay closed.
The move reflects the huge numbers of office staff working from home during the coronavirus pandemic.
This has led to a vast reduction in footfall in town and city centres and Christou said the firm has lost ‘tens of millions of pounds’ each month. It is now unable to meet many of its rent payments.
But Pret is not the only store in trouble, with tens of thousands of jobs set to be lost across the sector as sales dived off a cliff.
The lockdown has hammered UK business with John Lewis also under the cosh (pictured, its Kingston store)
Harrods (pictured, the Knightsbridge store in London) boss Michael Ward also told his staff 700 jobs will have to go because of the need to cut costs
Sir Philip Green’s Topshop empire revealed redundancy plans this month, with the Arcadia group poised to cut around 500 of its 2,500 head office jobs.
The lockdown has hammered business, with sources in John Lewis admitting it is ‘highly unlikely’ all 50 will ever open again.
Boss Sharon White, who joined from broadcasting watchdog Ofcom before the pandemic, wrote to 80,000 staff at the retailer and its supermarket Waitrose warning their bonuses are unlikely next year as she tried to improve profits.
Harrods boss Michael Ward also told his staff 700 jobs will have to go because of the need to cut costs.
In a memo to staff he said: ‘With a heavy-heart, today I need to confirm that due to the ongoing impacts of this pandemic, we as a business will need to make reductions to our workforce’ and said 14 per cent of its 4,800 staff would likely lose their jobs’.
Rishi Sunak has been urged to give every adult in the UK a £500 shopping voucher in a bid to boost struggling high streets.
The Resolution Foundation think tank called on the Chancellor to hand out the tokens totalling some £30billion to get shops back on their feet.
The vouchers would be valid for a year in areas including face-to-face retail, tourism and hospitality. They would be £500 for every adult, and £250 per child.
After appointing City advisers in May, Pret is understood to be considering a range of restructuring options.
These include a company voluntary arrangement (CVA) insolvency process, which would allow Pret to close unprofitable sites.
The closures will mean several jobs will be at risk, with the chain understood to be considering a range of restructuring options
Last week, the firm started shrinking its estate by closing two shops, with the loss of 28 jobs in Newcastle and Gateshead, saying the stores were ‘no longer financially viable’.
Pret raised £91million in emergency funding from its banks since the start of the pandemic and cut executive pay.
But Christou has warned its ‘mid to long- term’ outlook ‘remains very unknown’.
Pret a Manger was founded in 1986 by entrepreneurs Sinclair Beecham and Julian Metcalfe.
The pair made millions by selling large stakes to McDonald’s and then private equity firm Bridgepoint.
German investment firm JAB Holding, which owns Dr Pepper and Krispy Kreme doughnuts, took over Pret two years ago in a $2billion deal.
By this weekend, Pret had reopened 339 of its shops. Customers in England are now able to eat in some of the larger sites.
On a video call to staff leaked to the BBC, Christou said: ‘We’ll be doing a broader communication to the teams, just talking through the initial work that’s been done on this, so things will start to become clearer from July 8.’
‘Eat out to help out’: Chancellor Rishi Sunak warns a generation of young people risk being ‘lost’ to coronavirus pandemic unless people start spending in pubs and restaurants
The Chancellor warned a generation of young people risked being ‘lost’ to the coronavirus unless the public started spending in pubs and restaurants.
Rishi Sunak asked Britons to ‘eat out to help out’ in a bid to boost the economy and avoid a jobs meltdown that will hit the young hardest.
Mr Sunak said he feared the younger generation would otherwise be ‘scarred by coronavirus’.
Chancellor Rishi Sunak asked Britons to ‘eat out to help out’ in a bid to boost the economy amid the coronavirus pandemic
He told the Times: ‘This is a consumption-driven economy; people used to, three months ago, go out with their friends or family to go and have a meal.
‘Or buy a car, or upgrade their house, or move house.
‘Go camping, come up to the Yorkshire Dales and go coast-to-coast.’ Mr Sunak added it was important to get ‘the next few bits right’ in order to save the younger generation’s jobs and lifestyles.
The Bank of England’s chief economist Andy Haldane predicted last week Britain was headed for a V-shaped recovery.
Addressing the comments, the Chancellor said ‘we all want Andy to be right’ but conceded some hardship was inevitable.
