MORE than 450 Droitwich workers face the axe if the merger of two mail order firms is blocked.
Mid-Worcestershire MP Peter Luff has joined the crusade along with other MPs and unions to allow March UK to merge with GUS home shopping. This company includes the former Kays catalogue empire, now called Reality.
March UK, which owns Littlewoods agreed a deal to buy GUS for £450m, with the two businesses wishing to merge so they can fight off increased competition from the internet and new catalogue rivals.
But Trade Secretary Patricia Hewitt may block the bid for fear of "substantial lessening of competition" in mail order shopping. She has now ordered a full Competition Commission inquiry into the deal which is now on hold. She is expected to announce her decision on Tuesday, December 23.
If blocked, this will affect 468 employees at the Spa's Berry Hill industrial estate distribution centre and the 2,406 employed by GUS at it's head office, warehouses and depots in Worcester.
MP Peter Luff (Con) said: "The government must not block this merger. If they do they will show they do not understand the retail sector. The rights and wrongs of this merger must be judged against its impact on all retailing, not just the catalogue sector. "Catalogue retailers are in competition with High Street shops like Argos and internet retailers like Amazon.
"This bid must be allowed to go ahead - or the Secretary of State risks bearing responsibility for hundreds of redundancies in my constituency. I have written a joint letter with other MPs to her saying just this."
Unions and MPs have stepped into the row fearing up to 19,000 jobs could be axed nationwide unless she clears the merger as GUS and March will struggle to survive if they are forced to take on their new rivals alone.
GUS Home Shopping were contacted but declined to comment on the matter.
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