// Oak Furnitureland proposes to close down 27 out of its 105 stores
// The move places 163 staff members at risk of redundancy
// Last month Oak Furnitureland was rescued from collapse in a pre-pack administration deal
Oak Furnitureland has revealed plans to shut down 27 showrooms, in a move which will put 163 jobs at risk.
The hardwood furniture retailer announced the restructuring plans just over a month after it was rescued from collapse via a pre-pack administration deal.
It said it has now earmarked 27 of its 105 stores for closure as trading conditions “continue to be challenging”.
When investment firm Davidson Kempner Capital Management rescued Oak Furnitureland from collapse last month, it announced that a strategic review of the business would be undertaken.
The retailer today confirmed that consultations with the landlords, and the 163 employees at risk of redundancy, have now started.
“The current proposal to close some showrooms forms part of a company-wide review that we are undertaking as a business,” Oak Furnitureland chief executive Alex Fisher said.
“We are committed to driving forward a plan for our future growth, and although this has been a difficult decision, it is the right one for the business in these uniquely challenging times.
“We are confident that the decision will ensure we remain a competitive and dynamic choice for our customers.
“I would like to say thank you to all of my colleagues in every department who have been endlessly committed and patient during this process.
“Those employees affected have been informed and will be fully supported by our HR teams.”