Menaje del Hogar Valencia branch to close

Description:

Redundancy notices will hit Menaje del Hogar and the Valencia branch will close.

Redundancy will hit around 100 employees of the giant electrical goods store Menaje del Hogar and 7 stores will close.  The company, which specialises in the distribution of electric home appliances will present redundancy notice that will affect 16% of the group. The company is justifying the measures on economic and organisational reasons.

Menaje del Hogar anticipates that they will present what translates as "A Labour Force Adjustment Plan" which here is called an "ERE", which is short for "Expediente de Regulación de Empleo".  This will affect about 100 workers, which represents around 16% on a group workforce of more than 600 employees, according to informed union sources.

Stores in Madrid, Seville, Valencia, Badajoz and Avilés will be closed. The company justifies the measures on economic and organisational reasons and has already communicated this to the representatives of the unions.  They state that the ERE will affect a total of 34 stores, of which 7 will close because of (poor) sales results or  the (negative) imbalance in their accounts. In the rest of the stores there will be a cut of around 54 workers.

In particular, the establishments that the company will aim to close are located in Madrid (La Vega, Xanadú y Éboli), Sevilla, Valencia, Badajoz y Avilés.  The reductions in staff will be a reduction in 27 branches and some of those affected are in Madrid, Cordova, Alicante, Saragossa, Toledo, Navarre, Cadiz, Pamplona, Malaga, Salamanca and Barcelona.

The Menaje del Hogar company is owned by the British company Kesa Electrical and has a network of 45 stores in Spain and 21 in Portugal. In the last presentation of the results of the group in the period November 2008 to January 2009, Kesa Electrical indicated that the Spanish market continues to register the worse commercial conditions in Europe, with a new significant fall in invoicing by Menaje del Hogar.

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