Next has issued a devastating warning to Britain’s high streets about possible store closures after losing a legal case over equal pay.
The clothes store is set to appeal against last month’s verdict by the court which saw over 3,500 current and ex-employees win their claim after a six-year battle.
In August, an employment tribunal found that Next was unable to demonstrate that the lower basic pay delivered to sales consultants compared with warehouse operatives was not the result of sex discrimination.
Lord Wolfson, the brand’s chief executive, warned that Next could be forced to shut down stores due to concerns over costs if the tribunal’s ruling remains in place.
However, he noted that the company is confident it will eventually win its appeal in court.
This warning comes amid a wave of store and bank branch closures that have swept communities across the UK and changed the nation’s economy.
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The clothes store is sounding the alarm after losing a legal case
PA
In its half-year results, Next outlined the potential fate of many sites unless the appeal is successful.
The company stated: “In the possible (but unlikely) event we lose this case on appeal, there will be a financial cost to the group and its ongoing future operating costs.”
“Each of our stores is treated as a business in its own right, and must remain individually profitable if they are to open in the first place and continue trading at lease renewal.
“Inevitably some of our stores will no longer be viable if this ruling is upheld on appeal.
“Materially increasing store operating costs will result in more shops being closed when their leases expire, and will materially impede our ability to open new stores going forward.”
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