300 jobs at risk at Gala Coral

Gala Coral is trying to negotiate a 'cash for equity deal', it is reported

The UK's biggest bingo operator Gala Coral said it has planned to close five clubs and shed backroom staff, putting around 300 jobs at risk.

The privately-owned firm is looking to make savings in support functions, and will begin consultation with staff.

Employees in Nottingham and Barking, Essex, are likely to be affected.

Coral is also planning to close five clubs - Hull, Port Glasgow, Leven in north-east Fife, Pitsea in Essex, and Aldridge in Birmingham - leaving it with 148 sites.

The company has blamed the tough economic climate as well as a bingo duty hike in April's Budget.

Bingo clubs have also been under pressure in recent years from the introduction of the smoking ban, restrictions on money-spinning gaming machines and the economic downturn.

Most of the job losses will come through centralising functions such as marketing, finance and human resources.

The group, which also owns the Coral bookmaking chain and employs around 19,500 people, said it would make "every effort" to find staff alternative jobs within the company.

"The changes announced today will ensure that the group is as efficient as it can be in these unprecedented times and that the group is well positioned for future growth and development," Gala added.

The group's chairman, Neil Goulden, said the group was trading ahead of last year despite the "very challenging" conditions.