Saturday, September 26, 2020

1,800 to be made redundant as Pendragon reviews store estate and operational structure

Nottingham-based car retailer, Pendragon, is set to make 1,800 redundancies as the impact of COVID-19 has accelerated a review of the company’s future operating model.

Deciding to introduce a more efficient operating model with fewer stores and leaner support functions, 15 stores will be closed as a result of the review. Pendragon noted that these sites are predominantly loss making and are therefore no longer expected to be viable. Combined, the stores made an operating loss before tax of £2.0m in FY19.

A total of approximately 400 redundancies are expected from these locations.

Further proposed changes to the firm’s operating model are expected to result in an additional 1,400 redundancies.

In total, as a result of the store estate reductions and operational structure changes there will be approximately 1,800 redundancies.

Bill Berman, Chief Executive Officer, said: “The above proposals reflect our intention to create a resilient, leaner and more profitable business across the entire group. These have been difficult decisions for the Board to make and our priority now is to manage the transition to our new operating model.

“The COVID-19 pandemic is a uniquely challenging situation and we want to protect as many jobs as we can sustainably and the proposed redundancies are, of course, extremely regrettable. During the pandemic we have focused on ways to improve workflow, efficiency and our digital capabilities.

“It is paramount that we embed these behaviours into all areas of the business, as we expect the economic environment to remain challenging. The actions that we are undertaking are for the long-term health and success of the Group and ensure that we emerge from the pandemic as a more competitive and stronger business with the ability to thrive in the future.

“I would like to take this opportunity to thank every one of our employees for the hard work that has been done to reopen our businesses from lockdown. I am proud of the essential work we undertook to assist key workers during lockdown and for the way we have served our customers in store and online during these difficult times.”

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