Waterstone's is to axe up to 650 jobs as a result of new cost-cutting measures. The redundancies, the books chain said, are the result of a move to a new distribution centre in Burton-on-Trent, which will see store managers order from the central hub rather than from individual suppliers. The hub will also service online sales.
Waterstone's, which has more than 300 stores and 4,500 staff, said the job cuts were essential "in spite of considerable efforts to minimise the effects of the changes".
Last week Simon Fox, chief executive of Waterstone's parent company HMV, said the total book market – including both internet and store sales – was down 4% over the last year. He added: "We are focusing on successfully completing the migration to the Waterstone's book hub to help to improve financial performance."
The group is expected to post annual profits of about £58m at the end of June. Four years ago it made more than £130m. Fox said Waterstone's had held market share and that sales at Waterstones.com were up 70% over recent weeks – albeit from a low starting point. He added that in the most recent weeks the market was down by some 3%.
The Waterstone's job losses were confirmed as Restaurant Management Services, which operates Pizza Hut outlets in Northern Ireland, went into administration. Of the 14 outlets, five are to close immediately with the loss of 130 jobs, and 160 additional jobs are at risk as administrator Moore Stephens tries to find a buyer for five more restaurants.
David McClean, of Moore Stephens, said he had "no option" but to close some of the outlets immediately. He added: "The company's financial situation has been exacerbated by the current economic downturn."
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