On June 25th I heard that Marshalls PLC were going to temporarily lay-off staff and close down some of their manufacturing facilities.
The information I received was from someone close to the company, who told me that it was rumoured Marshalls were soon to suspend all manufacturing, which could last for several months, and put the workers on half pay.
I was cautious about running the story based on the say-so of my source but I thought it prudent to seek a comment directly from Marshalls and I wrote to the company asking if there was any truth in it - the response was "in relation to the 'rumour' there are no plans to take any action."
Three weeks later the Halifax and Calderdale Evening Courier run a story - Marshalls workers face temporary lay-offs.
The Courier quotes company spokesperson, Diane Kay: "A period of temporary lay-off provides an opportunity to balance existing stocks against sales and in so doing to provide for future job security."
Marshalls has recently raised £34million in a rights issue to shore up its balance sheet and seems to have lost focus on what is the best market to concentrate its sales effort.
Marshalls share price has dropped from its highs of £3.88 per share in March 2007 and as recently as February 2009 its share price was at a level not seen since the early 1990's (see share graph).
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