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Burberry to cut up to 290 UK jobs | Burberry to cut up to 290 UK jobs |
(about 3 hours later) | |
Luxury clothing brand Burberry is to close a sewing plant in Rotherham, South Yorkshire, as part of a shake-up which will cost up to 290 jobs. | |
The site in Eastwood, which makes basic outerwear for the label, will shut with the loss of up to 170 jobs. | |
Another 120 jobs will go at its only remaining UK plants in Castleford and Keighley, West Yorkshire. | |
The company said investment would now be focused on the Castleford factory, where its famous trenchcoats are made. | |
It is also closing its Thomas Burberry line in Spain, with the loss of about 250 jobs. | |
'Very bad news' | |
In 2006 Burberry announced the closure of its factory in the Rhondda Valley in South Wales, which employed 300 people. | |
The Rotherham sewing facility has been owned by Burberry for less than five years. There's nothing else round here... we're devastated Angela Adams, Burberry employee | |
Tim Roache, regional officer of the GMB union, said: "This is very bad news for Rotherham. | |
"We will want to have a thorough discussion with Burberry on the logic of this rationalisation before we are able to move forward. | |
"We have been around the blocks with Burberry before as they sought to move jobs from the UK to China - we want to make sure nothing like that is happening this time." | |
The Burberry plant is situated on a roundabout in the Eastwood area of Rotherham - one of the most deprived parts of South Yorkshire - where shocked workers gathered outside the gates on Tuesday. | |
Sales fall | |
Patricia Turner, 52, who has worked at the site for 35 years, said: "Everyone's so upset. It's just a shock. We did not know." | |
Her colleague, Angela Adams, 39, said: "It's a disgrace. I only found out when my friend stopped me as I was walking in the gates. | |
"She said 'Have you heard it on the news?' We had no idea. | |
"There's nothing else round here. We're devastated." | |
Meanwhile, Burberry also announced that its like-for-like sales for the last three months of 2008 fell by 3%. | |
Chief executive Angela Ahrendts said its markets "remained challenging and volatile". | |
Total sales were £329m, up 30% from the same period of 2007. | Total sales were £329m, up 30% from the same period of 2007. |
But the company said orders from its stores had been lower than expected, especially in Spain and the US. | But the company said orders from its stores had been lower than expected, especially in Spain and the US. |
It predicted in November that its results for the full year would be at the lower end of expectations. | It predicted in November that its results for the full year would be at the lower end of expectations. |