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Thousands of Next workers have won an equal pay claim against their employer.

An employment tribunal said the mostly female sales consultant floor staff should not be paid less than warehouse staff, the majority of whom are male.

It’s the result of a more than six-year legal battle involving 3,540 claimants working at the high street giant.

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To defeat the claim Next had to prove there was a difference in wages because of a “material factor” unrelated to sex discrimination but it failed to do so.

How did Next justify the pay difference?

The company said the pay difference between the roles was because the going “market rate” for a sales consultant was different to a warehouse operator. This had to be observed to ensure the viability of the business, it said.

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The tribunal accepted the difference was Next attempting to cut costs and increase profit and said it was not “direct discrimination”.

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But that argument was not enough.

The business need was not so large as to overcome the discriminatory effect of lower basic pay, the tribunal said.

“There must usually be a more compelling business reason for such arrangements to be justifiable”.

Next said it will appeal the ruling.

A legal first for ‘undervalued’ workers

The firm representing the workers Leigh Day said it was the first successful equal pay claim of its type against a national retailer.

Customer service was “demanding” and often “undervalued”, said one of the three lead claimants Helen Scarsbrook who worked for more than 20 years at Next.

“Anyone who works in retail knows that it is a physically and emotionally tough job,” she said.

“Customer service, in particular, is very demanding and we do that in addition to lots of other essential tasks that go to make Next a successful business. You become so used to having your work undervalued that you can easily start to doubt it yourself.”

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Next’s response

Responding to the ruling Next said: “The tribunal rejected the majority of the claims made by the claimants, in particular all claims of direct discrimination, and all aspects of the claims made in respect of bonus pay.

“The tribunal expressed serious criticisms of the claimants’ expert evidence and overwhelmingly accepted the evidence of Next’s expert and fact witnesses.”

More claims to come

More claims are to come as Leigh Day said it represents more than 112,000 staff working for Asda, Tesco, Sainsbury’s, Morrisons and Co-op bringing “similar equal pay claims”, the firm said.

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Lola’s Cupcakes bakes £30m takeover by Finsbury Food

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Lola’s Cupcakes bakes £30m takeover by Finsbury Food

Lola’s Cupcakes, the bakery chain which has become a familiar presence at commuter rail stations and in major shopping centres, is in advanced talks about a sale valuing it at more than £25m.

Sky News has learnt that Finsbury Food, the speciality bakery business which was listed on the London Stock Exchange until being taken over in 2023, is within days of signing a deal to buy Lola’s.

City sources said on Thursday that Finsbury Food was expected to acquire a 70% stake in the cupcake chain, which trades from scores of outlets and vending machines.

Lola’s Cupcakes was founded in 2006 by Victoria Jossel and Romy Lewis, who opened concessions in Selfridges and Topshop as well as flagship store in London’s Mayfair.

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The brand has grown significantly in recent years, and now has a presence in rail stations such as Waterloo and Kings Cross.

The company employs more than 400 people and has a franchise operation in Japan.

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Lola’s is part-owned by Sir Harry Solomon, the Premier Foods founder, and Asher Budwig, who is now the cupcake chain’s managing director.

The deal will be the most prominent acquisition made by Finsbury Food since it delisted from the London market nearly two years ago.

Finsbury is now owned by DBAY Advisors, an investment firm.

A spokesperson for Finsbury Food declined to comment.

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UK growth slows as economy feels effect of higher business costs

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UK growth slows as economy feels effect of higher business costs

UK economic growth slowed as US President Donald Trump’s tariffs hit and businesses grappled with higher costs, official figures show.

A measure of everything produced in the economy, gross domestic product (GDP), expanded just 0.3% in the three months to June, according to the Office for National Statistics (ONS).

It’s a slowdown from the first three months of the year when businesses rushed to prepare for Mr Trump’s taxes on imports, and GDP rose 0.7%.

Caution from customers and higher costs for employers led to the latest lower growth reading.

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Claire’s to appoint administrators for UK and Ireland business – putting thousands of jobs at risk

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Claire's to appoint administrators for UK and Ireland business - putting thousands of jobs at risk

Fashion accessories chain Claire’s is set to appoint administrators for its UK and Ireland business – putting around 2,150 jobs at risk.

The move will raise fears over the future of 306 stores, with 278 of those in the UK and 28 in Ireland.

Sky News’ City editor Mark Kleinman reported last week that the US-based Claire’s group had been struggling to find a buyer for its British high street operations.

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Prospective bidders for Claire’s British arm, including the Lakeland owner Hilco Capital, backed away from making offers in recent weeks as the scale of the chain’s challenges became clear, a senior insolvency practitioner said.

Claire’s has now filed a formal notice to administrators from advisory firm Interpath.

Administrators are set to seek a potential rescue deal for the chain, which has seen sales tumble in the face of recent weak consumer demand.

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Claire’s UK branches will remain open as usual and store staff will stay in their positions once administrators are appointed, the company said.

Will Wright, UK chief executive at Interpath, said: “Claire’s has long been a popular brand across the UK, known not only for its trend-led accessories but also as the go-to destination for ear piercing.

“Over the coming weeks, we will endeavour to continue to operate all stores as a going concern for as long as we can, while we assess options for the company.

“This includes exploring the possibility of a sale which would secure a future for this well-loved brand.”

The development comes after the Claire’s group filed for Chapter 11 bankruptcy in a court in Delaware last week.

It is the second time the group has declared bankruptcy, after first filing for the process in 2018.

Chris Cramer, chief executive of Claire’s, said: “This decision, while difficult, is part of our broader effort to protect the long-term value of Claire’s across all markets.

“In the UK, taking this step will allow us to continue to trade the business while we explore the best possible path forward. We are deeply grateful to our employees, partners and our customers during this challenging period.”

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Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “Claire’s attraction has waned, with its high street stores failing to pull in the business they used to.

“While they may still be a beacon for younger girls, families aren’t heading out on so many shopping trips, with footfall in retail centres falling.

“The chain is now faced with stiff competition from TikTok and Insta shops, and by cheap accessories sold by fast fashion giants like Shein and Temu.”

Claire’s has been a fixture in British shopping centres and on high streets for decades, and is particularly popular among teenage shoppers.

Founded in 1961, it is reported to trade from 2,750 stores globally.

The company is owned by former creditors Elliott Management and Monarch Alternative Capital following a previous financial restructuring.

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