HSS Hire, which has a tool hire and traffic management base on the Isle of Wight, has announced it is to cut around 300 jobs and close 134 of its stores.
Many of the national chain’s stores have been closed throughout the coronavirus pandemic, which the company says has accelerated a strategy to invest in technological solutions leading to fewer physical stores being needed across the country. It plans to cut the total number of stores by 55%.
Around 11% of the 2,600-strong workforce is to be lost as a result of today’s announcement. It is understood a number of roles locally are now at risk of redundancy.
Although it has been announced that 134 stores will close it is currently unclear if the Isle of Wight branch at Hunnyhill in Newport will be one of the ones to disappear.
HSS Hire has posted a pre-tax loss of £12.9million for the 6 months of 2020, with debt levels now sitting at £236.8million.
Steve Ashmore, Chief executive of HSS Hire, has said:
“Our primary concern since the outbreak of Covid-19 has been the safety and wellbeing of our colleagues, customers, suppliers and other stakeholders. We responded quickly and decisively to preserve cash, optimise financial performance and ensure continuity of supply to our customers. I am incredibly proud of all our employees for their dedicated hard work in helping do this.
“Whilst Covid-19 had a significant impact on our performance in the first six months, I am encouraged by the resilience of HSS during a very challenging period. Our recent investment in technology has proved critical, allowing us to support our customers during lockdown, our digital channels and click-and-collect service providing low-contact alternatives to branches. As a result, we have now seen revenue return to above 90% of 2019 levels with profitability back to pre-Covid-19 levels.
Article continues below this advertisement “While our strategic ambitions remain unchanged, Covid-19 has demonstrated that we are now ready to accelerate our strategy by further investing in our technological platforms. These investments will allow us to reduce our physical footprint which, whilst regrettably resulting in the loss of around 300 roles, allows us to become a more agile, technology-driven business which is essential in our markets as well as reducing costs and enhancing shareholder value. This will build on our already differentiated commercial proposition and create the most advanced, customer-centric offer in an increasingly competitive marketplace.
“While we are encouraged by the resilience HSS has shown during this period of unprecedented disruption, we continue to model a number of scenarios on the potential impact that Covid-19 could have on the group results. In certain forecasts, there is an indication that financial covenants could be breached, indicating the existence of a material uncertainty in the adoption of going concern should our lenders not support addressing these areas if they arise”.
Such a shame another one to bite the dust.
Soon there won’t be any businness left,
Apart from the Government run ones which are useless and of course
Island Roads!
Yep, soon no private enterprise, just state own businesses and an ever more tyrannical government. Hmm… sounds a bit like last century.
Remember it was to flatten the curve in 2 weeks.
Flatten the economy, flatten your rights, flatten everything !!! Except the virus.
Oh come on, don’t be so downhearted. You forget we now have our “world beating” track and trace app mk2 so alls good now.
This is absolutely tragic news for yet another business and another name that many people know on the High Street however I have to ask the question how can a company have debts at £236.8 million there has to be a point where a company is existence is decided that it’s not worth being a business and surely debts at this amount should not have risen so high; This debt Of 236.8 million is going to significantly affect other businesses where the money is owed as well as those employees made redundant, I know if I took my business to a level where it was in such debt in excess of £100,000 I would question the viability let alone £236.8 million !!
Never found them competitive with there prices