Betfred is set to close 132 of its betting shops and cut more than 600 jobs from September, attributing the significant reduction to increased taxation and a challenging economic environment.
A consultation process has been launched over the closures, which will affect more than a tenth of Betfred’s retail estate.
The move will leave the company with around 1,100 shops across the UK. This follows similar reductions by rivals such as Paddy Power and William Hill, who have also closed dozens of stores in the past year.
Jo Whittaker, Betfred’s chief executive, expressed the difficulty of the situation, stating: “It is with deep regret that we have today started a consultation with colleagues working in more than 130 of our shops regarding a proposal to close those locations.
“We have tried hard to protect all our sites and the colleagues who work in them, but the combined impact of higher employer national insurance contributions, wage inflation, increases in gambling taxes and wider economic uncertainty has left us with no choice.
“These are well-run shops, staffed by dedicated colleagues, and it is incredibly hard to see any of them close, but the current fiscal and regulatory environment has made it impossible to keep trading all our shops.”
Back in April, William Hill and 888 owner Evoke confirmed around 270 betting shops were being closed as it looked to offset a hit from higher taxes.
Explaining the decision, Per Widerstrom, chief executive of Evoke, said: “The significant UK duty increases announced in November represented a fundamental shift in the economics of our largest market and will have a substantial impact across the regulated industry.
“We have acted decisively to mitigate the impact of these changes and protect long-term shareholder value, including initiating a strategic review and implementing significant operational actions across the business.”
More to follow…
