Tyrone Constitution - News - Fears of further job losses in Omagh

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Fears of further job losses in Omagh

Thursday, 19 January 2012

FEARS are growing that Omagh could soon be hit by further job losses after doubts emerged this week over the future of two UK clothing outlets which both have branches in the town.
Yesterday (Tuesday), Welsh firm, Peacocks, which has a store at the Showgrounds Retail Park in Omagh, was granted 10 days' protection from its creditors to find an investor or else face administration. The company also owns the Yorkshire clothing chain, Bonmarche, which has a store at Main Street in Omagh.
The UK-wide retailer, whose headquarters are based in Cardiff, said it continues to make operating profits, but the group's overall financial performance has been weighed down by the level of its debts, which stem from a management buy-out in 2006.
It is understood that, yesterday, talks with lenders, including Royal Bank of Scotland and Barclay's, had so far failed to find a solution.
While the search for new investors continues, the Peacock Group have filed a notice of intention to appoint an administrator for both businesses. The existing management remain in place as an administrator has yet to be appointed, a statement released by the company on Monday said.
A spokesperson for Peacocks said: "Discussions with other potential investors are ongoing. To protect the business whilst discussions with such investors are progressed, the directors of the Peacock Group have filed a notice of intention to appoint an administrator."
Meanwhile, the Board of the Peacock Group also revealed that it was in "advanced and exclusive" discussions with a potential purchaser over the sale of the Bonmarche chain.
The statement added: "Following a careful and thorough review, the Board believes that Bonmarche will be better positioned under different ownership."
This latest potential blow for the Omagh area comes less than a week after the Ulster Bank announced that it was going to cull 950 jobs - with 350 of those losses being concentrated in Northern Ireland.
The move comes as part of the announcement by the bank's parent company, Royal Bank of Scotland (RBS), that 3,500 staff will be laid off in its investment wing in the UK and internationally in a bid to compete in the financial sector.
Although it's not yet clear if and how many Ulster Bank employees will lose their jobs locally, West Tyrone MLA Ross Hussey said more needs to done from the Department of Enterprise, Trade and Investment (DETI) to secure alternative employment for those at risk.
Mr Hussey said: "We are obviously sympathetic to the 950 people who are losing their jobs, particularly the 350 which are due to go in Northern Ireland. The problems surrounding the Royal Bank of Scotland are well documented and given that Ulster Bank are owned by them this is the latest news of job losses linked to that."
The West Tyrone MLA added: "However, the sheer number of jobs going is of obvious concern and highlights the work that must be done by DETI Minister, Arlene Foster, to support the creation of jobs throughout Northern Ireland to ensure these people have options available to them in seeking alternative employment."