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article imageUK retailer TJ Hughes enters administration, 4,000 jobs at risk

By Christopher Bates     Jul 3, 2011 in Business
Liverpool - As British discount department store TJ Hughes has entered administration, a large black cloud continues to hang over the British economy.
Founded by Thomas J Hughes on London Road in Liverpool, the store has been operating since 1912. Despite its 99 year history, 4,000 jobs are now on the line as the retail giant entered administration on June 30.
Tom Jack, joint administrator at Ernst & Young, said: "The retail environment has been particularly tough during the first six months of this year and TJ Hughes has struggled against a backdrop of reduced consumer spending and increased competition. Whilst management have tried to reinvigorate sales performance and control costs, it has unfortunately not been possible for the business to continue to trade outside of insolvency. TJ Hughes will continue to trade as we look for a buyer of the chain. It is very much business as usual and we are grateful to the chain's loyal customers, employees and suppliers for their continued support."
The firm's 57 stores remain open throughout the United Kingdom, with clothing retailer Primark and retail entrepreneur Sir Philip Green amongst the potential buyers.
Meanwhile, chocolate retailer Thorntons is shutting 120 of its 384 stores over the next three years, in a move expected to erase 750 jobs.
Alongside TJ Hughes, women's fashion retailer Jane Norman has also entered administration. As a result, it has been announced that 33 stores will shut and 400 members of staff will be made redundant.
Not only is the retail industry making cuts, however, earlier this week, Lloyds Banking Group and HSBC announced plans to cut 15,000 and 700 jobs respectively.
Recent figures published by the Cabinet Office show that eight people are fighting for each job in the town of Scunthorpe, while one in five jobseekers have been looking for work for more than a year.
More about Job Seekers, Retail, United Kingdom, TJ Hughes, Shopping
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