Betfred has revealed plans to close 132 of its betting shops throughout the UK, which accounts for about 10% of its retail locations. This decision is projected to result in approximately 600 job losses.
The company has initiated consultations with the staff members who will be affected by this decision. The closures are intended to address the rising costs of operation and increasing regulatory pressures.
Joanne Whittaker, managing director of Betfred, expressed her regret regarding the closures, attributing the move to a variety of factors. These include the rise in employers' National Insurance contributions, significant wage inflation, higher gambling taxes, and overall economic uncertainties.
Whittaker stated, "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. Our priority now is to support the colleagues affected, and to continue serving customers and communities across the rest of our estate."
This announcement follows a warning from Fred Done, the founder of Betfred, who had previously indicated that the company could face challenges due to escalating gambling taxes impacting its retail operations.
