Sterling Furniture announces redundancies amid tax hike and 'challenges'

Scotland’s largest furniture retailer has announced it will cut jobs to save money as it faces significant financial challenges.

Sterling Furniture said it would make redundancies to “ensure the long-term success” of the business.

The business has said it needs to “restructure” and make cuts in response to the additional tax burden announced in the UK Government’s recent budget and the “evolving retail landscape”.

National insurance contributions for employers are set to rise to 15% from April – the Scottish Government estimates it will cost businesses £850 per employee on average.

Sterling was founded in 1974 by George Knowles, who turned a disused paper mill in Tillicoultry into Scotland’s largest furniture showroom after he saw the growing popularity of out-of-town retail parks in the United States.

The family-run furniture giant – which branded itself as “The Big One” – opened five other stores across Scotland, in Aberdeen, Dunfermline, Edinburgh, Glasgow and Uddingston, as well as a clearance outlet in Dundee and a distribution centre based in Auchtermuchty, over the last 50 years.

Sterling currently employs more than 400 staff, however it is not known how many jobs are at risk.

The company confirmed that no sales staff will be impacted and the majority of roles affected by the process will be in operations.

None of the stores are at risk of closure, the company said.

A spokesperson told STV News: “In response to challenges in the evolving retail landscape, including the additional tax burden announced in the recent budget, we have been forced to take difficult decisions to safeguard the future of the company.

“Regrettably, after conducting a comprehensive review of our operations and staffing levels, we have determined that restructuring and redundancies are necessary to ensure our long-term viability and success.

“The well-being of the affected staff is our main priority, and we fully acknowledge the impact these redundancies will have. We will do everything possible to minimise job losses and, where feasible, support employees in exploring alternative roles within the organisation. We are committed to helping them through this process to ensure a smooth transition.”