Carphone Warehouse to close Romford and Hornchurch stores as nearly 3,000 set to lose jobs across UK
PUBLISHED: 10:00 17 March 2020 | UPDATED: 10:05 17 March 2020
Nearly 3,000 people are set to lose their jobs as Dixons Carphones announces plans to shut its standalone Carphone Warehouse stores including shops in Romford and Hornchurch.
Dixons Carphones said its shops will shut on April 3 as it plans to sell mobile phones solely in its 305 combined Currys PC World stores and online across the UK.
The announcement will affect Carphone Warehouse shops in Hornchurch’s High Street, The Liberty shopping centre and the Brewery shopping centres.
It expects to make 2,900 redundancies, but said almost 1,800 affected staff are set to take new roles elsewhere in the business.
The group’s 70 Carphone Warehouse stores in Ireland will remain open and its international operations are unaffected.
Dixons Carphone said the move is “essential” to help turn around its UK mobile arm, which is set to make a £90million loss this year.
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Carphone Warehouse group chief executive Alex Baldock said: “There’s never an easy time for an announcement like this, but the turbulent times ahead only underline the importance of acting now.”
“We’re working hard to look after those colleagues we can’t find new roles for, financially and otherwise.
“We’ll pay enhanced redundancy, any bonuses, honour their share awards, and help them find new jobs through an outplacement programme.”
Dixons Carphone said it had not yet seen a large hit from the coronavirus crisis across its core chain apart from supply issues, but is “preparing for one”.
However, its 29 travel stores have been badly affected by the outbreak as passenger numbers plummet, and it is expecting profits from the division to be knocked by around £5million.
The firm said it had also seen a “notable” rise in demand for fridges and freezers, small domestic appliances and laptops as people prepare for home working and potential self-isolation.
Dixons Carphone said: “We are aware that our stores could experience a significant reduction in sales in the months ahead and we are modelling a range of downside scenarios and planning accordingly.
“We are ready to switch more fulfilment to our online and direct channels and we will manage our costs and cash closely, including a tight control of capital expenditure if necessary.”
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