A trade union has hit out at Mike Ashley-owned Frasers Group after an East Lancashire business's facility was reportedly sold to an investment company.
Studio Retail announced there would be around 100 job losses at its site in Accrington last year.
Formerly Express Gifts, Studio Retail is a digital retailer with around 1.8 million customers which sells branded clothing and home product ranges.
The company was purchased by Frasers Group, owned by former Newcastle United owner Mike Ashley, in January 2023, and at the time confirmed there would be redundancies, but did not comment further.
Now, retail, warehouse, and distribution trade union Usdaw has been briefed that Studio Retail's Accrington warehouse has been sold to EP Properties, an investment company.
The potential closure date for the site in Accrington, originally proposed for the end of this month, has been changed, with 60 colleagues being required to stay and continue working until the end of October.
Staff who must stay will no longer attract the agreed benefit of pay in lieu of notice.
Julia Baldwin, Usdaw area organiser, said: “This news has been a further blow to Usdaw members who were already trying to come to terms with the changes proposed in April.
“I have met with the company to present the case for a retention payment, however these negotiations have been difficult - resulting in a small package being offered to people that are required to stay with the business.
"This is disappointing news for colleagues who have stayed professional and loyal to the company, despite the extremely challenging circumstances they found themselves in earlier in the year.
“The negotiations have been hindered by the noticeable lack of presence from Frasers, who have left talks to HR representatives, which has made it difficult to negotiate any enhanced packages.
“Usdaw will continue making representations to the company to try and secure the best deal for members.
"In the meantime, we are providing our members with the support, advice and representation they require at this very difficult time.”
Back in October, staff said they had been told of plans to relocate the business to Derbyshire, nearly 100 miles away, making it nigh on impossible for them to keep their jobs unless they uproot their lives and move to the East Midlands.
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