Shoe shop chain Barratts Priceless makes 1,600 staff redundant

 

The high street gloom deepened on Friday as more than 1,600 workers at shoe chain Barratts Priceless were made redundant and 400 jobs were put at risk following the collapse of toy chain Hawkin's Bazaar. Barratts' administrators Deloitte said the 1,610 full- and part-time staff who manned its 371 concessions in stores such as Dorothy Perkins would be paid up until the end of Saturday. The Bradford-based shoe group collapsed this month when 170 of its 3,840 staff were laid off and 18 of its 191 stores closed. Deloitte partner Daniel Butters said it was hopeful that some retail jobs could be saved as the administrators were in "active discussions to rescue a significant part of the remaining business". The jobs blow came as restructuring specialist Zolfo Cooper was formally appointed at Hawkin's parent company Tobar, which also owns toys and children's accessories retailer Letterbox. The group, which also has a home shopping arm, employs 380 full-time staff at its 65 stores and head office in Beccles, Suffolk. The failure of Hawkin's, following the crucial Christmas trading period, is the second among retailers this week: fashion chain D2 Jeans has also folded. D2's administrator BDO immediately closed 19 of its 47 UK stores, making more than 200 employees redundant. No job losses have been announced at Hawkin's, with Zolfo Cooper saying the business would be run as a going concern. The 55 "pop-up" stores Hawkin's opened for Christmas, which employed 400 temporary staff, will close as planned. Zolfo Cooper's Peter Saville said: "Hawkin's has experienced exceptionally challenging trading conditions of late. At this stage we intend to continue to trade the component parts of the group whilst we seek a buyer for all or parts of its operations." Hawkin's was set up in 1973 and sells quirky toys, gifts, games and gadgets using the tagline "things you thought had gone forever, things you never even knew existed". Insiders suggested that a buyer would be found for at least part of the loss-making business, which at last count had debts of £42m.

Spain sets out 8.9bn euros of new austerity measures

 

Spain's new conservative government has outlined 8.9bn euros ($11.5bn, £7.5bn) in new spending cuts and tax rises to lower the country's borrowing. The announcement is the first in a wave of austerity measures, with a total of 16.5bn euros to be cut in 2012. It also said Spain's 2011 deficit will be about 8% of its output - higher than the 6% seen by the previous government. The Popular Party last month ousted the Socialists from power at elections amid deep economic gloom. The government of new Prime Minister Mariano Rajoy has vowed to meet Spain's target of reducing the public deficit to 4.4% of gross domestic product in 2012, no matter what. On Friday, Deputy Prime Minister Soraya Saenz de Santamaria maintained a freeze on public sector wages for another year and ruled out practically all government hiring. "This is the beginning of the beginning," Ms Saenz de Santamaria said. "We are facing an extraordinary, unexpected situation, which will force us to take extraordinary and unexpected measures." Taxes on the wealthiest Spaniards will also be raised for at least two years, raising 6bn euros, she said. Spain's borrowing costs have jumped in the last year - reaching as high as 6.7% for 10-year debts - as investors feared that Spain might join Greece, the Irish Republic and Portugal in needing a bailout. The country's economy has shrunk sharply since a housing bubble burst in 2008, and it has an unemployment rate of 21%, the highest in Europe. The austerity measures have sparked a number of large protests across the country.

High street lingerie chain La Senza has announced that it is planning to enter administration in the next 10 days due to "poor trading conditions"

High street lingerie chain La Senza has announced that it is planning to enter administration in the next 10 days due to "poor trading conditions".

The retailer has 2,600 staff at 146 stores and 18 concessions across the UK.

A spokeswoman said: "Due to trading conditions in La Senza's high street locations andthe overall macro environment which are having an adverse effect on the company,the board of directors of La Senza has filed a notice of intention to appoint administrators.

"For the avoidance of doubt, the company is not currently in administration, and no administrator has been appointed."

The firm was sold to private equity group Lion Capital five years ago by Dragons' Den entrepreneur Theo Paphitis.

He tweeted: "Just heard sad news that @LaSenzaUK which was once my baby has filed for administration."