Luxury bedmaker Vispring is expected to make redundancies at its large Plymouth factory as the coronavirus pandemic appears to have reduced sales even for firms aiming at more affluent consumers.
Union bosses said staff at the large plant in the Ernesettle area of the city, where about 230 people are employed, have been written to and told job losses are likely.
It is understood the firm, which mothballed its operation for a few weeks during the height of the Covid-19 lockdown, has suffered from falling orders for its bespoke, high-end mattresses and divans, popular with minted celebrities such as David and Victoria Beckham, Tom Daley, Claudia Winkleman, Paris Hilton, and Kirstie Allsopp.
The Queen’s Award-winning company has not made a statement about the potential job losses or how many staff may be affected and Business Live is awaiting details after contacting senior management.
But the GMB Union, while not recognised by Vispring, does have members at the Plymouth factory and confirmed potential redundancies are being considered.
The union is to contact Vispring top brass and ask that it reconsiders, pointing out that the firm’s products, which sell from £2,000 to more than £60,000, are aimed at the well-healed and well-known and are therefore still likely to be in high demand despite any post-Covid-19 recession.
Matt Roberts from the GMB Union, said: "Our members have received letters from the company regarding potential redundancies. The details are patchy, with no idea of numbers or financial information, but the company refer to the obvious disruption in their sales during the Covid pandemic."
He added: "GMB Union would urge the company not to act in haste. It is clearly true that their sales will have been severely disrupted in the short term, but we must remember that they manufacture a luxury high-end product. Some of the beds they sell can set you back £50,000 or more.
“During this pandemic we have seen that lower-income people have been far worse affected financially than the middle- and high-earners, who have often been able to actually save money at this time.
“These wealthier customers of Vispring may still be in a position to buy their luxury beds again soon enough. Until these letters were suddenly issued, workers understood the company to be financially strong."
Mr Roberts said there may be some workers that might wish to apply for voluntary redundancy for personal reasons, but the GMB Union still intends to submit counter-proposals following consultation with members,.
He said the proposals would “try to avoid the need for any compulsory job losses” and said: “Once decent manufacturing jobs are lost, they almost never come back again, and we need more manufacturing jobs in Plymouth not less. Our counter proposal will be aimed at keeping as many jobs as possible."
In March, Vispring “temporarily closed” due to the situation “surrounding coronavirus”.
Vispring has been making beds since 1901, and only uses 100% British wool. In addition to its celebrity fans, it also supplies high-end companies such as Princess Yachts.
In 2019, it reported a turnover of £44,496,000, but an anonymous employee has told Plymouth Live that, though the firm is “in the black”, it has “supply issues” and “orders have plummeted”. The company won the Queen’s Award for Enterprise in 2012.
