Clothing retailer USC, which is owned by Sports Direct, and makes up some of the retail giant‘s “premium lifestyle” business alongside Republic, will have several stores closed.
Billionaire and Sports Direct owner Mike Ashley is reportedly axing around 30 of USC‘s worst performing stores, with the rest continuing to operate.
The retailer‘s directors have filed a notice of intention to appoint receivers to USC at the High Court on Tuesday, prompted by a supposed demand from fashion label Diesel, for unpaid debts.
In 2014 it was agreed that USC would be unable to repay the debts, the year that saw Diesel sever ties with the company after 15 years of working together.
Around 1,000 members of staff are employed across 90 stores and on Wednesday morning, approximately all 100 workers at the USC warehouse in Dundonald, Ayrshire, were called to a meeting on Wednesday morning by bosses where they were informed of redundancy set to follow. Reasons for the decision were not given.
USC‘s troubles are subsequent to the recent demises of City Link, the parcels delivery firm, and Bank, a high street retailer that bit the dust this week.
At posting of Sports Direct‘s interim results in December, the company said sales at its “premium lifestyle” division had fallen by 3% to £99.9m following the closure of loss-making stores.