Play.Com's Multinational Parent Company Blames Tax Changes for Job Losses
Jersey VAT loophole results in unemployment
So, you thought that Amazon didn't like paying its whack of tax? Well at least it hasn't shut up shop, making some 147 people workless. Nope, but Play.com's parent company, Japan mega-corp Rakuten has.
Along with 147 staff in Jersey, the 67 members of staff in Play's Cambridge and Bristol offices are also going to take on 2013 with no jobs because the Low Value Consignment Relief, which allowed items less than £15 to be sold to the UK VAT-free in Jersey has gone. This has lead Rakuten to restructure Play away from retail.
An anonymous corporate voice told the BBC, "Moving forward we are intending to focus exclusively on our successful marketplace, which is our main business area, and to phase out the direct-retail part of our business." Basically this means PlayTrade... no need for inventory, inventory control, storage, warehouse staff...
Basically, it's going to be turned into a sort of eBay.
See how Jersey is dealing with it here.
Along with 147 staff in Jersey, the 67 members of staff in Play's Cambridge and Bristol offices are also going to take on 2013 with no jobs because the Low Value Consignment Relief, which allowed items less than £15 to be sold to the UK VAT-free in Jersey has gone. This has lead Rakuten to restructure Play away from retail.
An anonymous corporate voice told the BBC, "Moving forward we are intending to focus exclusively on our successful marketplace, which is our main business area, and to phase out the direct-retail part of our business." Basically this means PlayTrade... no need for inventory, inventory control, storage, warehouse staff...
Basically, it's going to be turned into a sort of eBay.
See how Jersey is dealing with it here.
Comments
config 9 Jan 2013 17:22
1/2
Play.com used to be a great store, then Rakuten bought it and you could tell pretty quickly things weren't looking good, starting with the brand being overshadowed by a name that few in Europe had heard of.
And they can STFU about closure of the VAT loophole - it's been on the cards since before they bought Play.
And they can STFU about closure of the VAT loophole - it's been on the cards since before they bought Play.
AndyJWS 10 Jan 2013 14:07
2/2
Probably doesn't help that their reputation for customer service has been plummeting in the past couple of years, and increased price competition from The Hut Group and HMV online. There's no denying they have competitive offers, but sometimes the prices are closer to HMV High Street - and that's not just the VAT difference!