Home shopping specialist Redcats is to shut its agency business Empirestores, with the likely loss of 850 jobs, to focus on its e-tail operations.
Redcats UK managing director Stephane Roche said the decision had been taken with “deep regret”, but would be to the long-term benefit of the wider business.
In a statement, Redcats – owned by French retail giant PPR – said: “Empirestores operates on the declining agency market. It has been increasingly impacted by the rapid growth of high street value retailers, online traders and the availability of alternative financing options for credit.
“The sales decline has generated losses with no recovery prospects, specifically in an environment made worse by a credit squeeze and fragile customer confidence,” it said.
Redcats will focus on developing its La Redoute, Vertbaudet and Daxon brands, as well as new projects.
Roche said: “We deeply regret having to implement these initiatives. However, this decision will create a viable platform for investment and development as we build a successful business for the long term.”
Bradford and Wakefield warehouses and contact centres will lose staff and the closure will be completed by January 2009.
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