DFS to cut jobs in "necessary" restructure following £271m revenue dip
A UK furniture retailer has announced that it will be cutting jobs as it restructures following lockdown.
DFS Furniture, which owns brands including DFS, Sofa Workshop and Sofology, has confirmed that it is taking “necessary actions” following a £271m dip in revenues this year.
The retailer has not confirmed how many jobs are at risk as it restructures its Sofa Workshop and Dwell brands, but said that the reduction in headcount will incur restructuring costs of less than £2m.
The scheme is aimed at improving the brands’ profits, and is estimated to have a total cost of approximately £16m to £18m.
The company has also announced that it is deferring the opening dates of five new Sofology locations, in order to “take immediate advantage of attractive units that may be vacated by distressed retailers on otherwise fully-occupied retail parks”.
DFS Furniture said: “Reflecting the challenging outlook for our market, we are taking necessary actions to preserve our future competitiveness.
“We have commenced an operational restructuring of Sofa Workshop and Dwell to improve the returns generated by those brands.
“Largely driven by this restructuring, we anticipate that we will recognise non-cash impairments of acquisition-related goodwill and some limited property right-of-use assets.
“We will also incur some limited cash restructuring costs of less than £2m associated with a targeted reduction in headcount.
“In total we expect to recognise a P&L charge of £16-£18m in financial year FY20 in relation to this restructuring.”
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