WITHAM: Co-op store saved from closure

A RECESSION-hit department store facing closure has been saved after a new buyer was found.

Vergo Retail Ltd is set to purchase the struggling Co-op in Newland Street from the East of England Co-operative Society, in a deal including 11 other stores across the region.

The Witham store includes clothes, home furnishings and a travel shop.

Although Vergo's company director David Thompson could not comment on the ins-and-outs of the contract, he confirmed jobs were safe.

"Customers and staff can be reassured by our considerable experience in successfully managing major regional department stores," he said.

"Under protection of employment regulations that have been negotiated, staff jobs at all levels in the stores are protected."

The firm, which recently acquired stores in the south west of England and currently runs large department stores in Liverpool and Sunderland, is expected to complete the deal on Saturday.

East of England Co-operative boss Richard Samson said: "In the current economic climate, maintaining job security is a key priority."

The Witham Co-op was one of four stores across Essex and Norfolk proposed for closure with the loss of 140 jobs.

Now, the future is looking brighter for the store under the direction of new head Mr Thompson, who has previously served as company director of Mothercare, Habitat and BhS, and worked alongside Topshop giant Philip Green.

"There is scope for significant further growth through the expansion of product ranges across the store and this is something we will be looking at from an early stage," he said.

East of England Co-operative Society was keen to stress that despite negotiations, it would be "business as usual".

The deal has been widened to include others department stores, securing the jobs of 350 workers.

Twelve stores in Norfolk, Suffolk and Essex have been sold to Liverpool-based Vergo for an undisclosed sum.

The Co-op said it would retain ownership of the sites, leasing properties to Vergo.

Chairman of the Witham Town Centre Strategy Group, Paul Ryland, said: "I hope this will be the start of the regeneration of this part of the town.

"I would hope it's a fairly low-cost store that will be suitable for the people of Witham."