More than 200 staff at troubled Dundee shoe company William Smith are facing an anxious wait to find out whether their jobs are safe after the company confirmed it was consulting over possible redundancies.
The 146-year-old firm, which has its headquarters at Dryburgh Industrial Estate in Dundee, operates the 32-strong DE Shoes and Foot Factory chain of stores throughout Scotland.
The company said it had been hit by extremely challenging trading conditions, and all efforts to identify a sustainable way forward for the business had so far failed.
It said it had now entered into a formal consultation period with staff during which it would be determined whether redundancies would be necessary.
“The directors have been continually exploring how the business model could be changed to ensure sustainable profitability,” Smith’s said in a statement on Tuesday.
“However, against the backdrop of such external pressures on customer spending no sustainable business model has been found.
“Therefore, we announced on Friday that we would be engaging in a formal process of employee consultation, lasting a minimum of 90 days, before any final decisions with regards to the company or individuals are taken.
“Throughout the consultation we will still be trading, we will still be paying our suppliers and if it does come to any redundancies every employee will receive what they are entitled to. The directors will also continue throughout this difficult time to identify any other options open to the company which would avoid or reduce the need to make redundancies.”
Accounts filed with Companies House show Smith’s fell to a pre-tax loss of £453,209 in the year to January 28, 2012, compared with a profit of £161,829 in the 12 months previous.
Turnover in the period, the latest for which accounts are available, also fell significantly from £8.46 million in 2011 to £7.68m last year. The accounts show Smith’s employed 219 staff on a part and full-time basis.
The company was founded in 1867 by William Smith, who set up in business in the Old Overgate and quickly established three further shops in the town. It has passed through five generations of the family.
Robert Sinclair, great, great grandson of William Smith, has been chairman and managing director since 2011.
Dundee City West MSP Joe FitzPatrick said he was concerned to hear of the firm’s troubles and would be making contact with management to see what support could be offered.
He said: “It is concerning when a Dundee-based family-run retail company that has traded for 146 years faces such difficulties.
“The city’s two Foot Factory shoe shops in Lochee and Broughty Ferry are part of the company, and the announcement will also affect administrative employees at the Dundee head offices in Faraday Street.
“I note however the company is still trading and paying its suppliers, and the 90-day period of staff consultation will precede any final decisions about the company’s future.
“I will be seeking an early meeting with the company at its Dundee head office to discuss the situtation and see if there is anything that I can do or pass on in terms of specific assistance which the Scottish Enterprise Minister could provide.”
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