Department store chain Fenwick has called in restructuring experts as it aims to cut costs following several loss-making years.
AlixPartners has been drafted in, sparking concern that job losses and store closures could soon follow.
Fenwick has eight department stores in England and also trades online. Its locations are in its hometown Newcastle, Brent Cross shopping centre in north London, Bentall Centre in Kingston upon Thames, Bracknell, York, Colchester, Canterbury and Tunbridge Wells.
A Fenwick spokesperson told The Times there were no plans for store closures: “Like all retailers at the moment, we are keeping a close eye on our costs, especially in light of the tax and minimum wage increases in last October’s Budget”.
Family-owned Fenwick’s recent results showed a pre-tax loss of £38.1m in the year to January 2024 while sales were down 5.2% to £299m. The department store has made losses for six consecutive years.
The retailer’s financial struggles led it to sell its Bond Street store for £430m in 2022. It used the proceeds to pay £40m into its staff pension fund, repay debt, pay a dividend to family members, and invest in its stores and ecommerce arm.
It also suffered during the pandemic as it had a limited online presence at the time. AlixPartners is helping Fenwick move its website from Salesforce to Shopify to help cut costs.
Last year, chair Simon Calver and chief executive John Edgar stepped down from their roles. Calver was replaced by former Rothschild banker Sian Westerman.
The chief executive role was intended to go to former Harrods executive Nigel Blow but he did not take the position after Harrods was part of a national scandal last year.
The news of restructuring arrives as WHSmith looks to sell its high street arm, New Look shuts all stores in Ireland and Poundland is up for sale.
However, a source close to Fenwick told The Times it had seen its best six-month trading performance in five years.
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