‘Scandal’ of Arcadia collapse as taxpayer forced to pay for sacked workers' redundancy

Workers have to apply through the statutory process and the taxpayer will cough up while greedy multi-millionaire Philip Green sales off on his yacht, says GMB Union

GMB has revealed the ‘scandal’ of Arcadia’s collapse as it emerges the taxpayer will have to for out of sacked workers' redundancy pay-outs.

The historic Burton site in Leeds is set to close with 400 jobs lost, it was announced last week.

The former Burton factory in Leeds has been in operation since 1922 - most recently as a distribution centre for Arcadia stores including Dorothy Perkins and Burtons.

Administrators Deloitte, who raked in millions for their services during the sell off of Philip Green’s Empire, told workers there would be no money left to pay their notice pay or redundancy.

This leaves hundreds of members have staff having to apply to the Government for the money that is rightfully theirs – which will ultimately be funded by taxpayer cash.

Peter Davies, GMB Senior Organiser, said: “Obviously this is an absolute tragedy. This site was a thriving distribution centre still rammed with stock. The administrators have raked in millions overseeing selling off the company names.

“But not one jot of effort has been made on the workers’ behalf who will have to carry on up to the closure date, clearing that stock and won't get a penny out of.

“Workers will have to apply for redundancy through the statutory process and the taxpayer will cough up whilst that greedy multi-millionaire Philip Green sales off on his yacht.

“It's absolutely scandalous and time we had much tougher laws in the UK to protect workers who always have to pay the price for these board room disasters.”