Uncertainty surrounds the future of Travis Perkins’ branch and its staff in Keswick after the UK chain of builders’ merchants announced it was going to close around 165 sites, with the loss of 2,500 jobs nationwide.
A statement from the firm’s Northampton headquarters confirmed the number of “likely” closures and job losses. It did not reveal where they would be but a statement said the focus would be on “small branches where it is either difficult to implement safe distancing practices or where marginal profitability will be eroded.”
The figures for closures and job losses contained in a company proposal represent eight and nine per cent respectively of the branches and workforce within the group, which also includes Wickes and Toolstation as well as Travis Perkins.
Staff at the Keswick branch at Browfoot Works off Penrith Road declined to comment today. Consultations about the company’s restructuring are already under way.
Keswick and the North Lakes has already started to be hit by closures and job losses because of coronavirus. Caterite at Embleton made 25 people redundant this month and more job losses are to be made at the Theatre by the Lake, while the Derwentwater Hotel at Portinscale is not re-opening.
A spokeswoman for Travis Perkins said the company’s priority was to support colleagues, adding: “Regrettably, these changes are likely to result in a number of job losses, although we will do our best to retain colleagues where possible. As we have just started consultation with colleagues whose jobs are at risk, a final number cannot be confirmed at this stage.”
Besides Keswick, the firm has Cumbrian stores in Wigton, Penrith, Workington, Cleator Moor, Millom, Ulverston, Barrow, Kendal, Brampton and two in Carlisle. It is understood that the ones in Barrow, Carlisle (Blackdyke Road) and Brampton will stay open, while Millom is set to close.
Over the last six weeks, the group has been opening more of its branches under safe, social-distancing working practices. However, there had been a large drop in revenue during lockdown and the company said the UK was facing a recession which will hit demand for building materials in 2020 and 2021.
Chief executive Nick Roberts said: “The Covid pandemic has created significant challenges across our group. Whilst we have experienced improving trends more recently, we do not expect a return to pre-Covid trading conditions for some time and consequently we have had to take the very difficult decision to begin consultations on the closure of selected branches and to reduce our workforce to ensure we can protect the group as a whole.
“This is in no way a reflection on those employees impacted and we will do everything we can to support them during this process. The group has a robust balance sheet, strong liquidity position and I am confident that these proposed changes will enable us to trade successfully through this period of uncertainty with a cost base that better reflects the environment we are operating in.”
