CAFE chain Pret a Manger is about to shut as many as 45 of its UK excessive avenue shops in a transfer that may put as much as 800 jobs in danger, it has been reported.
Pret has been struggling throughout the coronavirus lockdown with the corporate already confirming that it has been dropping “tens of hundreds of thousands of kilos every month”.
Pret a Manger is claimed to be poised to shut virtually one in ten UK retailersCredit score: Getty Photos – Getty
Pano Christou, the cafe chain’s chief govt, will make an announcement on the way forward for the shops this Wednesday, July 8, in response to The Mail on Sunday.
The newspaper experiences how the transfer is about to influence virtually one in ten of Pret’s 434 UK branches, in addition to as much as 800 of its 8,000 staff.
A Pret spokesman advised The Mail on Sunday: “We’ll replace our staff members in early July as soon as the plan has been finalised.”
The Solar has requested Pret for extra data and we’ll replace this text once we hear again.
Companies in turmoil in 2019 and 2020
PRET A Manger is the newest in an extended listing of companies to be dealing with bother. In 2019 and up to now in 2020 we have seen:
- Go Outdoors enter into administration placing 2,400 jobs in danger
- Jamie Oliver’s “Jamie’s Italian“chain go bust, alongside his Fifteen and Barbecoa eating places
- Links of London go into administration placing 350 jobs in danger
- Marks and Spencer shut 35 extra shops because it pushes ahead with plans to axe 145 retailers throughout the UK
- Dozens of Monsoon and Accessorize shops shut
- Struggling shoe store Office has mentioned it “might shut retailers” as a part of restructuring plans
- Fears Pizza Express may very well be subsequent to enter administration because it “brings in emergency advisers”
- Hairdressing chain Supercutswent into administration in October 2019 – placing 1,200 jobs and 220 salons in danger
- Maternity and child retailer Mothercare collapsed into administration in November 2019 after 58 years on the excessive avenue, placing 2,500 jobs in danger
- Division retailer chain Bealeswent into administration in January 2020 with 23 retailers and 1,052 jobs in danger
- Excessive finish vogue model Ted Baker mentioned it plans to axe 160 jobs in February 2020
- Cell phone retailer Carphone Warehousementioned in March 2020 that it will shut all 531 standalone shops in April
- Classic furnishing and vogue agency Cath Kidston mentioned it was closing all 60 excessive avenue shops in March 2020
- Style retailer Animal mentioned in April 2020 it was closing all 21 of its UK shops
- Division retailer chain Debenhams fell into administration for the second time in April 2020
- P&O Ferries mentioned in Could 2020 that it was taking a look at making 1,100 employees redundant
- TUI warned in Could 2020 that 8,000 jobs may very well be lower as a result of ongoing coronavirus disaster
- British Airways mentioned in Could 2020 that it nonetheless plans on urgent forward with 12,000 job cuts
- Oasis and Warehouse went into administration in Could 2020, with 1,800 workers positioned on furlough
- Shoe chain Aldo collapsed into administration in June 2020 with 5 shops completely closed
- Victoria’s Secrets plunged into administration in June 2020, placing 800 jobs in danger
- Style chain Quiz put its store enterprise into administration in June 2020, placing 82 shops in danger
Nearly all of Pret’s retailers are positioned close to workplaces and airports, which means a big chunk gross sales normally comes from employees and travellers.
Income is known to have taken successful as 1000’s of individuals have labored from house since March to assist cease the unfold of Covid-19.
Final month, Pret was reported to have seen gross sales drop to £3million, simply 15 per cent of what they’d normally be, in response to a leaked video seen by the BBC.
Because of this, the chain was reportedly only able to pay a third of its rent after providing landlords solely a small portion of what it owes them.
A spokesperson on the time confirmed to The Solar that the enterprise has been “massively affected” by coronavirus and mentioned it would not be capable of pay its June lease invoice in full.
The spokesperson continued: “Regardless of reopening most of our retailers, we’re dropping tens of hundreds of thousands of kilos every month and aren’t able to pay our June quarter lease in full.
“We’re working with our landlords to search out the easiest way ahead.”
The warning over its lease fee got here simply days after Mr Christou warned Pret is at present in “the attention of the storm” with fears rising that the chain will not break even till September.
In a letter to landlords seen by the Financial Times, he mentioned: “We really feel strongly that the Pret model has each cause to consider it can thrive once more, however we’re at present within the eye of the storm.”
Pret initially closed all UK branches again in March when the federal government ordered all non-essential stores to shut up shop.
To this point, it has reopened 320 of its shops for takeaway and supply – prospects can now additionally dine-in in a few of its bigger websites.
The pandemic is inflicting chaos on the UK excessive avenue, with the Centre for Retail Analysis predicting that 20,000 retailers might shut for good this 12 months.
This might in flip end in 235,000 job losses within the retail sector.
To this point, retailers together with Cath Kidston and Laura Ashley have collapsed, whereas Debenhams has additionally been compelled to name in directors for the second time in 12 months.
Extra just lately, Harveys Furniture and JD Sport-owned Go Outdoors have additionally plunged into administration.
Shoe chain Aldo has also collapsed, whereas Quiz clothing has put its store enterprise into administration.
We have got a full round-up of all of the shops and restaurants that have gone bust right here.
