First Quench in talks over shop closures
First Quench is in talks with landlords to stave off further shop closures as part of its on-going review to shut unprofitable stores as the credit crunch begins to bite.
The worsening economy has accelerated First Quench’s plans of shutting shops that aren’t making money, a spokesman told OLN.
“Plans to restructure our portfolio are underway and has seen First Quench Retailing shed loss-making stores, as any sensible retailer would do, in order to improve company performance and focus on the profitable majority during these recessionary times,” he said.
It is understood that First Quench hopes to reduce the size of rental payments for unprofitable Threshers, Wine Rack and The Local shops to within manageable levels.
“The number of stores that could close is dependent upon our capacity to reach suitable agreements with these landlords,” he said.
The company has denied rumours that 100 shops will close within months. "That figure has been plucked from thin air," a spokesman said.