FEARS of job losses at a major East Lancashire employer have been sparked by the possibility of its merger with two other companies owned by Mike Ashley's Frasers Group.

Staff at Studio Retail, which employs hundreds at its office in Clayton-le-Moors and a warehouse in Church, are concerned any amalgamation with brands Missguided and I Saw It First will lead to redundancies.

Now Hyndburn Conservative MP Sara Britcliffe, her prospective Labour opponent at the next General Election Graham Jones and union USDAW have swung into action to try and prevent any job losses.

It is believed the concerns were sparked by a letter from Studio Retail chief executive Paul Kendrick to all company staff.

In it he is understood to have said that Frasers Group, which bought the company out of administration for £1 in February 2022, was planning a merger with other company brands Missguided and I Saw It First.

The letter promises the move will bring about 'significant cost efficiencies' and allow Studio Retail to 'benefit from the longer-term group investments in technology by working on a shared platform'.

The proposal is understood to involve transferring of all the business operations of I Saw It First and Missguided to a single structure under Studio Retail for all brands and labels.

Staff were briefed at an initial consultation meeting on July 17 and contacted their union USDAW.

Now it and Miss Britcliffe are seeking further meetings with Studio management to discuss the firm's future and any job losses.

Julia Baldwin – Usdaw's area organiser - said: “It is extremely disappointing that, after last year’s large-scale restructuring, the company has again announced further changes affecting mainly the same staff.

"The timing is difficult, particularly in a cost of living crisis.

"Employees at Studio are loyal to the company, many with long service, and have demonstrated their commitment by relocating across the group.

“A second group consultation meeting is planned with the company where we will make robust and meaningful challenges on behalf of our members.

"Usdaw has also called for emergency meetings with our members to ensure they are fully represented and supported through this difficult time.”

Miss Britcliffe said: “I have worked closely with Studio Retail to protect jobs in Hyndburn in the past.

"I have been in touch with Studio's chief executive officer to ascertain how this will impact Hyndburn.

“As always, I will do my upmost to protect jobs here at home.”

Former Hyndburn MP Mr Jones said: "I’m deeply concerned.

"I’ve spoken with USDAW trade union since news first broke of staff changes and continue to be updated by union officials.

"The Fraser Group have entered a period of consultation and now every effort is being made to protect jobs."

A spokesman for Studio Retail declined to comment.

Frasers Group has been approached for comment by the Local Democracy Service but not responded.