25 jobs axed at Nike

Jul 3 2006 Jon Griffin

AROUND 25 staff at a Nike franchise in Birminghams Bullring were thrown out of work when the store suddenly closed its doors after running up major debts.

The Bullring outlet was one of four run nationwide by the Planmark Group, which has

now been placed into administration with the loss of up to 120 jobs in total.

The Kent-based operation, which also ran stores in Croydon, Manchester and Southampton, has collapsed with debts of around £1 million.

Administrator Asher Miller, of London-based David Rubin and Partners, said the Bullring store had been hit by spiralling franchise costs. With these shops, you have to pay the cost of the franchise as well as the cost of the goods, he said.

"A franchise brand like this does not necessarily work with a franchise operation.

"The problem is not with Nike, the brand remains as popular as ever and this was only a minute part of Nikes UK market.

"The bulk of Nikes route to market in the UK is through sports shops which sell different brands and ranges.

"The Birmingham store has now ceased trading and we are in the process of returning the stock to Nike."

Mr Miller said high property costs had helped put paid to the franchise operation.

Any customers with goods on order from the Birmingham store are asked to contact Nike's central customer service department direct.