Warehouse may lay off staff over Cellars closure

The Warehouse may be forced to lay off 26 workers after announcing the closure of its Cellars business today, a union says.

National Distribution Union secretary Laila Harre said the company had let its workforce down by not consulting them before closing.

In October the grocery arm of the iconic red shed shut shop resulting in 80 to 100 job losses, she said.

"This is the second time in recent months that they have announced a decision to close without discussion.

"Workers are supposed to be given the opportunity to have input into decisions that could lead to job losses but The Warehouse seems to think it is okay to just write people's jobs off without listening to any ideas they might have on how to save them."

Ms Harre said she understood that hard decisions had to be made but businesses also had a responsibility to staff.

The Warehouse today said it would withdraw alcohol from the six stores it was currently sold in after the Liquor Licensing Authority turned down its application for a full off-licence selling beer, wine and spirits at its Albany store.

Managing director Ian Morrice said earlier today the authority's decision was "very disappointing" but was not the only determining factor.

"The Warehouse Cellars concept has higher operating costs due to being a supervised area in-store and was developed in association with the improved customer offer of The Warehouse Extra."

The Warehouse recently announced it was axing the Extra store format.

It was expected to cost $1 million to withdraw the Cellars concept.

The withdrawal programme will begin after Christmas.

- NZPA