Struggling Tesco announce supermarket closures in Hungary
- 10 years ago
Under pressure retail giant Tesco is to close 13 stores in Hungary in an attempt to secure the long term survival of its remaining 209 outlets in the country.
Recent government legislation means loss making chains must close after two successive years of losses.
Nigel Jones is the Tesco CEO:
“One of the legislation changes that was put in the force is that businesses which are not profitable after two consecutive years must leave the market so it is absolutely essential that we remain profitable to protect our long term future here.”
The company faced a devastating 2014 with profit warnings and a plummeting share price.
Five hundred employees face dismissal or relocation and negotiations with trade unions are planned for next week.
József Sáling, is the president, of the Trade Union of Commercial Employees: “Our task, as Trade Union, is to protect the employee, to try to find another job for them or a fair outcome if they cannot get another job in another Tesco store.”
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Recent government legislation means loss making chains must close after two successive years of losses.
Nigel Jones is the Tesco CEO:
“One of the legislation changes that was put in the force is that businesses which are not profitable after two consecutive years must leave the market so it is absolutely essential that we remain profitable to protect our long term future here.”
The company faced a devastating 2014 with profit warnings and a plummeting share price.
Five hundred employees face dismissal or relocation and negotiations with trade unions are planned for next week.
József Sáling, is the president, of the Trade Union of Commercial Employees: “Our task, as Trade Union, is to protect the employee, to try to find another job for them or a fair outcome if they cannot get another job in another Tesco store.”
Ou