MP LEMBIT Opik has arranged to meet the chief executive of Shop Direct to try and persuade him not to close the store in Newtown.
The Home Shopping Group has confirmed plans to close its centre in Newtown, but the company’s chief executive, Mark Newton-Jones, has granted MP Opik the opportunity to meet and discuss the decision.
While the likelihood of any decision being reversed is unlikely, Mr Opik told the County Times: “I will do all I can to try and persuade Mr Newton-Jones to stop the closure.”
MP Opik said: “Since finding out the dreadful news I have held numerous discussions with Mark Newton-Jones (chief executive of Shop Direct) and have agreed to take a delegation to meet him at company headquarters in Speke, near Liverpool, on Thursday, February 4, when we will hold a full frank and honest discussion about the option of stopping the closure.
“Mr Newton-Jones has assured me there is a 90-day consultation period, allowing us to meet with him and explore all the possible options. I don’t want to raise anyone’s hopes or expectations but I have been presented with a chance to speak to the man in charge and at the moment I cannot see any better alternative than that.
“I’ve also been in discussions with the office of Peter Mandelson, Secretary of State for Business, Innovation and Skills. We have agreed that I shall contact him after our meeting on Thursday.”
MP Opik also confirmed that he will be holding a meeting with the Welsh Assembly Government to see if they can put together some sort of financial package that would allow the company to remain operating in Newtown. Shop Direct has blamed the announcement on the increasing number of people now choosing to shop online rather than phoning to speak to its operatives.
MP Opik added: “I have been assured that the decision to close the stores across the UK has not been motivated by the recession but by technology, which in many ways is actually worse as it is a trend we can expect to continue.
“Shop Direct Group says it has excess capacity due to falling call volumes. Numbers have declined from 33 million calls to 19 million in under four years. The potential Newtown job losses are part of a 1,500 job cut in the company as a whole.”
Assembly Member Mick Bates added: “This announcement is a sad sign of the times of changing shopping habits with more and more people conducting their business online.
“A 90-day consultation period will now begin with the individuals affected by these proposals and with their union representatives. It means we have a bit of time to get clarity on what’s really set to happen and it’s important everyone makes their views known.
“This is a dreadful period of uncertainty to the staff and they need to know as soon as possible whether there is any way their jobs can be saved, or what the alternatives are.
“The last thing we need is a potential closure which would add around five per cent to the unemployment statistics of Newtown.
"I’m working with Lembit to find a way to resolve the situation and that includes seeking funding for a financial support plan for this location from the Welsh Assembly or support for any retraining that staff may need.”