Shoe Zone has blamed costs related to the Budget as the reason it will be closing down stores.
The group – which employs around 2,250 staff across 297 shops in the UK – said the Chancellor’s move to increase employers’ national insurance contributions and increase the minimum wage has led to “significant additional costs”.
The retailer has said it has no choice but to close stores around the country in response to soaring wage costs and a bleak outlook.
A spokesperson said: “These additional costs have resulted in the planned closure of a number of stores that have now become unviable.”
Shares plunged by as much as 49 per cent this morning as the company cautioned that due to the tough trading and extra wage bill, annual profits would be lower than expected.
The firm also cancelled its final shareholder dividend payout for 2023-24.
It slashed guidance by up to half, warning that underlying pre-tax profits were now set to be not less than £5million - down from £10million previously expected for the year to September 27 next year.
Are all Shoe Zone stores closing?
It has been reported that a high number of the shops will be permanently shut, with the full list to be announced in the near future.
No time frame has been put on the full list, and workers are now in a sort of limbo of not knowing whether they will have a job in the new year. It is not known if all stores will close down.
Which ones are definitely closing down?
No definitive list has been announced but it is reported that spots thought to be headed for closure in London include Wembley, Holloway and Harrow, and nationwide hotspots to be affected include Leeds, York, Newcastle and Sheffield.
It seems none of the stores are safe, and bosses are assessing all of their locations before providing notice of permanent closures.
Where are Shoe Zone stores in London?
There are several Shoe Zone stores in and around London. These are:
There are also more stores further afield. To find your local one visit here and type in your postcode.
When could we expect an announcement?
It is expected that more will become clear in the first weeks of January.
