Pret A Manger puts up to 1,000 jobs at risk
Pret A Manger is to axe up to 1,000 jobs and permanently shut 30 shops after suffering significant losses in the coronavirus crisis.
The food chain has already reopened 339 out of its 410 UK shops, but footfall remains down and sales are 74pc lower when compared to the same point last year.
A total of 330 people will be made redundant as a result of the 30 store closures, and staff will also be consulted about cuts in other shops and its support centre. Around 1,000 jobs are understood to be at risk in addition to the 330 immediate job losses.
The redundancies are the latest in a brutal round of lay-offs, with more than 12,000 job cuts announced by major firms last week alone. Businesses that rely on demand from commuters and city office workers have been particularly hard hit, because many companies are keeping staff at home for the foreseeable future.
Just last week the owner of Bella Italia and Cafe Rouge, Casual Dining Group, revealed it had axed 1,900 jobs after falling into administration leading to the immediate closure of 91 sites. Administrators at AlixPartners are in talks with potential suitors to find a buyer for all or part of the group, which also owns Las Iguanas.
US hedge fund Elliott, which is owned by billionaire investor Paul Singer, is said to have made an offer for the entire business, Sky News reported. Casual Dining Group has up until now largely received offers for parts of the group.
Founded in 1983, Pret employs 13,000 people globally and has long been one of the high street's star performers. But bosses said the sandwich chain was experiencing a much slower recovery from the Covid-19 lockdown in Britain compared to the other countries where it trades.
Pret will be making several other changes in the second half of 2020 alongside the cutbacks. These include seeking a buyer for the lease of its main support office in Victoria, London.
Reduced sales have also had an impact on the company's main charity, the Pret Foundation, which is to launch a major fundraising campaign during the second half of the year - beginning with a digital raffle to raise funds.
Pano Christou, Pret chief executive, said: “We cannot defy gravity and continue with the business model we had before the pandemic. That is why we have adapted our business and found new ways to reach our customers.
“It’s a sad day for the whole Pret family, and I’m devastated that we will be losing so many employees. These decisions are not a reflection on anyone’s work or commitment. But we must make these changes to succeed in the new retail environment."
