Staff at footwear etailer Cloggs are being offered voluntary redundancy by new owner JD Sports Fashion as it looks to cut overheads.
The entire 35-strong head office team are understood to be considering the package, with sources indicating that JD, which acquired the business in mid-February, wants to halve the division. Drapers understands that about 60% are expected to accept the offer.
Staff have been given two months to make their decision, although some are expected to leave as early as the end of next week.
One source said: “People are worried about what will happen to the business now and so have decided to take what
is being offered to them and look for other opportunities.”
JD is putting in place a structure built around a smaller workforce, closing the Birmingham city centre head office and relocating the headquarters to Cloggs’ warehouse facility on the outskirts of the city. Warehouse staff are not thought to be affected.
As part of the restructure, it is understood the etailer will be directed away from its heavy discounting strategy towards a more full-priced offer.
Cloggs’ one standalone store, in Birmingham’s Bullring shopping centre, has closed since JD took control.
A second industry source told Drapers: “Having a store presence was not part of JD’s plan for the business.”
JD declined to comment.