News

The Works goes into administration

Discount book chain The Works was placed into administration yesterday afternoon. Administrator Kroll confirmed the news this morning, saying the decision was taken following "cash flow difficulties" after "challenging trading conditions and ever increasing competition within the retail industry".

The Works is the largest bargain book chain in the UK, with 317 stores. Last year it acquired the 26-store David Flatman chain, which was placed in administration in January 2007. It employs 1,600 staff.

Kroll partner Peter Saville reassured customers that it was "business as usual" for the stores. "The trading environment for all retailers is particularly tough at present but we are continuing to trade the business as a going concern," he said. "These stores have a strong brand identity and are predominantly situated in excellent retail locations. Although the retail sector as a whole will face some challenges in the coming months, there are still plenty of opportunities to succeed and as such, we are very hopeful of securing the future of the business.

“We fully appreciate that this is a concerning time for employees and we will keep all stakeholders as fully appraised as possible.”

The Works reported turnover for the year to end-April 2006 of £92.3m, with operating profit declining by 34% to £3.2m from £4.3m, and profit after tax falling to £2.1m from £3m.

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I work for the company and everybody is worried yet supportive of the company, people need to back it and realise that the high street nedds shops like The Works. Where else is there a similar friendly atmosphere along with so many great bargains?

It's been on the cards for a while. Once management made the decision to reduce sales space for books and replace them with cheap stationary/toyd/dvds etc it was doomed. How can a company expect to make the same money from 59p pens as it does from

Well, ya pay peanuts ya get monkeys...

theres a lot of hard working folks on the front line in both the stores & the warehouse who are feeling very disturbed by the way the company is being run. its clear that the management both in the warehouse & out in the shops,dont have a clue & have run a profitable business in to the ground by not listening to the very people who can turn it around.

This company deserves to go under as I have worked for this company and I know the management have adopted very unorthodox methods to stay in business, if your not part of the family or friend network then your face won't fit. Very bad company to work for as they pay very badly only meeting Minimum wage in alot of cases. Steer clear and products are cheap, out of date random rubbish..

I now that the works buy the books at discount prices so that they can sell at discount prices. hope that the rumors are true though, as that would mean the works would have a secure future.

I worked for this company until yesterday. They were kind enough to tell me on thursday morning, that it would be our last day trading and that the next two days would be spent packing up the shop.
So I have a busy week in the job centre ahead of me!
Any current employee's be careful!!!

I worked for the company for 5 years, and also got told last thursday that i had one week left. Very dissapointed with the lack of notice. Hope they manage to get a buyer, as I would hate to think of other employees going through what I have the last week. It is so disheartening that you work so hard, and you are loyal to a company, and this is what can happen. I often worked hours unpaid to get the sales in, and feel very let down. Just wish they were more honest with us when they knew they were in trouble. This has really messed up my finances, and I don't know what I'm going to do.

I worked for the company for two years, and was increasingly frustrated by the "family and friends" network that the management structure was based on. Many of the policies were based on rapid growth and buying out local competition, but the board rarely took into consideration that you have to have solid foundations to grow at a steady pace and develop good costing methods to maintain that...Good luck to all the current employees.

I work for the company and everybody is worried yet supportive of the company, people need to back it and realise that the high street nedds shops like The Works. Where else is there a similar friendly atmosphere along with so many great bargains?

It's been on the cards for a while. Once management made the decision to reduce sales space for books and replace them with cheap stationary/toyd/dvds etc it was doomed. How can a company expect to make the same money from 59p pens as it does from

Well, ya pay peanuts ya get monkeys...

theres a lot of hard working folks on the front line in both the stores & the warehouse who are feeling very disturbed by the way the company is being run. its clear that the management both in the warehouse & out in the shops,dont have a clue & have run a profitable business in to the ground by not listening to the very people who can turn it around.

This company deserves to go under as I have worked for this company and I know the management have adopted very unorthodox methods to stay in business, if your not part of the family or friend network then your face won't fit. Very bad company to work for as they pay very badly only meeting Minimum wage in alot of cases. Steer clear and products are cheap, out of date random rubbish..

I now that the works buy the books at discount prices so that they can sell at discount prices. hope that the rumors are true though, as that would mean the works would have a secure future.

I worked for this company until yesterday. They were kind enough to tell me on thursday morning, that it would be our last day trading and that the next two days would be spent packing up the shop.
So I have a busy week in the job centre ahead of me!
Any current employee's be careful!!!

I worked for the company for 5 years, and also got told last thursday that i had one week left. Very dissapointed with the lack of notice. Hope they manage to get a buyer, as I would hate to think of other employees going through what I have the last week. It is so disheartening that you work so hard, and you are loyal to a company, and this is what can happen. I often worked hours unpaid to get the sales in, and feel very let down. Just wish they were more honest with us when they knew they were in trouble. This has really messed up my finances, and I don't know what I'm going to do.

I worked for the company for two years, and was increasingly frustrated by the "family and friends" network that the management structure was based on. Many of the policies were based on rapid growth and buying out local competition, but the board rarely took into consideration that you have to have solid foundations to grow at a steady pace and develop good costing methods to maintain that...Good luck to all the current employees.