Claremont axes 10% of staff on a day of redundancies
Wednesday 20 March 1996
The radiator-maker Barlo is axing 180 jobs after difficult trading conditions in the UK and Continental Europe affected profits.
Elsewhere, the chemicals company Albright & Wilson has announced 80 redundancies. The jobs will go in the group's Birmingham head office and speciality chemicals business, where profits have fallen. The company is making a provision of pounds 5m to cover the cost of the redundancies.
The redundancies come just two days after Manpower, the employment agency, warned that the outlook for jobs growth in the next three months was the worst for more than three years. The agency also predicted that the problems in the jobs market and an increase in the spread of temporary and part- time work would unsettle the Government's hopes of a consumer-led revival in the economy later this year.
Claremont Garments, which supplies lingerie and outerwear to M&S, is undertaking "a fundamental review of its operations" after announcing a 10 per cent fall in profits to pounds 14.5m yesterday. The slump was due to a fall in sales in the second half of the year, when trading was affected first by the hot summer and then the mild autumn. A pick-up in sales in November and December failed to make up the lost ground. The company's margins were affected as it cut prices in an effort to stimulate sales.
Claremont, which supplies more than 90 per cent of its garments to M&S and keeps most of its manufacturing in Britain, is now considering the future of some of its 30 sites, with some closures a possibility. The chairman, Peter Wiegand, said: "We have to concentrate on our most efficient centres." The restructuring will cost pounds 6m, which will be charged against this year's profits.
The company added that while it remained committed to UK manufacturing, it would shortly sign a joint venture to take a 55 per cent stake in a Moroccan company that makes childrens' wear. The company already manufactures in Romania, China and Lithuania but says it expects overseas production to account for no more than 15 per cent of sales.
Claremont's order book for this year is up on 1995, with ladies' sports, dresses and lingerie particularly strong. However, margin pressures are continuing. The shares, which stood at more than 330p last year, fell 1p to 242p.
- 1 Renee Zellweger on plastic surgery reports: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
- 2 Disney announces new female-led film Moana
- 3 Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
- 4 Australian café owner sparks debate after saying 'No' to having unruly children on premises
- 5 Video: Boxer Vido Loncar brutally assaults referee following defeat
Ottawa shooting: Canadian soldier dies after being shot at National War Memorial with one gunman killed inside parliament
Renee Zellweger on plastic surgery reports: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
Isis releases first video showing stoning of woman accused of committing adultery as her father shouts 'don't call me Dad'
Oscar Pistorius: The brutal prison life that awaits disgraced athlete
Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Support for EU membership 'at highest level since 1991 with most Brits wanting to stay in'
iJobs Money & Business
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...