Pickfords' restructuring plan to cause 1,100 job losses: Report

LONDON: In the wake of the collapse in the housing market, Britain's biggest removals firm Pickfords could go for a restructuring plan that is likely to put 1,100 jobs at risk, media report says.

"Pickfords, could go through a controversial "pre-pack" administration, putting 1,100 jobs at risk," a newspaper said.

The business, rescued in April last year by Team Group, has brought in accountancy firm Deloitte to advise on a restructuring, the newspaper said, adding that Deloitte has been asked to look at solutions, including a pre-pack, which allows a business to be bought immediately upon being placed into administration, but the new owner is not obliged to take on its liabilities.

The practice though perfectly legal has aroused anger in some quarters.

"The uncertainty over Pickfords' future has prompted some former employees to contact the trustee of the firm's pension fund.

"The scheme is underfunded and participants are concerned that any new owner could buy just the Pickfords name, but not the assets," it said.