Scores of redundancies announced at Chesterfield furniture firm

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Scores of redundancies have been announced at a Chesterfield furniture firm.

The 50 job losses at KM Furniture Limited, based at Pottery Lane West, Whittington Moor, were revealed to shocked staff in a letter.

The letter, signed by finance director Tony McAleavy, states: “For the first six months of this year, our sales are £4,598k, £427k below budget.

“We need to make cost savings. We have examined various ways in which we can do this. Among other things, we have challenged ourselves to find savings in our material costs. However, in order for the business to continue to be viable, we still need to reduce our wages bill by £800k per annum and are therefore considering making a number of redundancies.

“We anticipate that we will need to make 41 members of the production team, six clerical staff and three managers redundant.”

The letter was sent to staff in October but has only just been seen by the Derbyshire Times. Since then, consultations with affected staff have been taking place. According to the letter, bosses aimed to have the redundancy process completed by December 8.

Management refused to comment further when contacted by the Derbyshire Times on three separate occasions this week.

Established 35 years ago, the firm supplies educational, storage and office furniture.

Meanwhile, it emerged on Friday that nearly 50 workers lost their jobs after a long-running scrap metal firm in Chesterfield collapsed.

Administrators confirmed that the majority of the 42 employees of Richard Fletcher (Metals) Limited have been made redundant.

The company was a scrap metal dealer based on Newbridge Lane, Old Whittington. An associated company, R Fletcher Waste Disposal Limited, trades from Clement Street, Sheffield.

‎A spokesman for administrators the P&A Group of Companies said: “The company had been marketed for sale for some time but a purchaser could not be found. The site has now closed and the majority of the 42 employees have been made redundant.

“We are currently clearing the site and selling off the scrap metal and machinery. The site is now being marketed for sale.”

The company was founded in 1982.

Earlier this year, Richard Fletcher (Metals) Limited was fined £16,000 for illegally disposing of waste by burning it.

The blaze on Bonfire Night 2013 sent dark smoke drifting over Chesterfield town centre.