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| Version 1 | Version 2 |
|---|---|
| Jersey retailer Play.com closes direct retail business | Jersey retailer Play.com closes direct retail business |
| (about 5 hours later) | |
| Online retailer Play.com is to shut down its retail business to become a marketplace-only, from March. | Online retailer Play.com is to shut down its retail business to become a marketplace-only, from March. |
| The Jersey-based firm blamed the move on the ending of Low Value Consignment Relief, which allowed items less than £15 to be sold to the UK VAT-free. | The Jersey-based firm blamed the move on the ending of Low Value Consignment Relief, which allowed items less than £15 to be sold to the UK VAT-free. |
| All 147 staff in Jersey are to be made redundant as well as 67 in its Cambridge and Bristol offices. | All 147 staff in Jersey are to be made redundant as well as 67 in its Cambridge and Bristol offices. |
| Play.com will now become more like a shopping centre, no longer selling directly to customers. | Play.com will now become more like a shopping centre, no longer selling directly to customers. |
| The Low Value Consignment Relief (LVCR) loophole was closed by the UK government in April 2012. | The Low Value Consignment Relief (LVCR) loophole was closed by the UK government in April 2012. |
| 'Hammer blow' | 'Hammer blow' |
| In a statement Play.com said: "Moving forward we are intending to focus exclusively on our successful marketplace, which is our main business area, and to phase out the direct-retail part of our business." | In a statement Play.com said: "Moving forward we are intending to focus exclusively on our successful marketplace, which is our main business area, and to phase out the direct-retail part of our business." |
| A spokesperson confirmed the changes meant they were completely pulling out of Jersey, but about 200 staff would be left in the restructured company, which will be based in Cambridge. | A spokesperson confirmed the changes meant they were completely pulling out of Jersey, but about 200 staff would be left in the restructured company, which will be based in Cambridge. |
| Jersey's Economic Development Minister, Senator Alan Maclean, said now in total about 600 people had lost their jobs in the island because of the end of LVCR. | Jersey's Economic Development Minister, Senator Alan Maclean, said now in total about 600 people had lost their jobs in the island because of the end of LVCR. |
| Senator Maclean said: "I'm saddened, this is a Jersey business, set up in the island that did extraordinarily well, that became a global brand. | Senator Maclean said: "I'm saddened, this is a Jersey business, set up in the island that did extraordinarily well, that became a global brand. |
| "We will work with other businesses and entrepreneurs to help them develop the next Play.com." | "We will work with other businesses and entrepreneurs to help them develop the next Play.com." |
| He said the government would do all it could to support those out of work. | He said the government would do all it could to support those out of work. |
| David Warr, president of Jersey's Chamber of Commerce, said it was another hammer blow to the island's economy. | David Warr, president of Jersey's Chamber of Commerce, said it was another hammer blow to the island's economy. |
| He said: "That's a significant increase in the number of people unemployed... and obviously that should be a concern to everyone. | He said: "That's a significant increase in the number of people unemployed... and obviously that should be a concern to everyone. |
| "I think we are going to have to work very hard to find these people new places to work." | "I think we are going to have to work very hard to find these people new places to work." |
| Garry Todd, a tax analyst, said LVCR ended almost a year ago and most businesses that would close have, indicating Jersey is through the worst of it. | |
| In September 2011, Play.com was taken over by Japanese e-commerce operator Rakuten. | In September 2011, Play.com was taken over by Japanese e-commerce operator Rakuten. |
| It paid £25m ($39.3m, 28.6m euros) for the company, which at the time had 14m registered users and was one of the largest online retailers in the UK. | It paid £25m ($39.3m, 28.6m euros) for the company, which at the time had 14m registered users and was one of the largest online retailers in the UK. |