Administrators close TJ Hughes distribution centre
The administrators of failed discount department store chain TJ Hughes have announced the closure of the company’s distribution centre in Liverpool.
Around 50 workers were told at a meeting on Friday afternoon that they had been made redundant with immediate effect.
TJ Hughes entered administration at the end of June with administrators Ernst & Young saying it would be business as usual whilst they looked for a buyer for the 57 strong chain of stores.
Ernst & Young said a number of parties were interested in buying the business but shortly afterwards appointed GE Europe to assist with selling off stock at the stores.
John Gorle, Usdaw National Officer said: The Union of Shop, Distribution and Allied Workers (Usdaw), claimed that the administrators had not followed proper procedures by law as staff had not been offered adequate consultation.
John Gorle, Usdaw National Officer said: “Our members are understandably shocked and devastated by the news and I’m extremely angry at the way this has been handled by the administrators. 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.”
He said that alarm bells would be ringing at the company’s remaining stores and head office and that the union was seeking urgent talks with the administrators to ascertain their intentions for the rest of the business.
Gorle added: “This is yet another example of the urgent need for government to review the laws surrounding administration and liquidation. Administrators are able to ignore workers legal protections and contractual terms because they know it is the taxpayer who ultimately picks up the bill for any compensation awarded to staff as a result. It is wrong and we shall continue to campaign for a fundamental change in the law so that workers are better protected.”
