Troubled department store group V&D wants to impose an across-the-board pay cut of 5.8% for all staff from February 1.

The company is also cutting 50 out of 450 jobs at its Amsterdam service centre and says secondary benefits for staff will also be reduced.

The measures are necessary to ‘compete with new players and the growing online market,’ the company said in a statement. This requires a structural reduction in costs.

The company is also planning to renegotiate terms on the rent of its 63 premises nationwide in an effort to cut its accommodation bill.

‘All this is necessary to continue the V&D strategy and to match current trends and market developments,’ acting chief executive Don Roach is quoted as saying by website nu.nl.

V&D lost €42m on sales of €619m in 2013.

New boss

The company also said on Monday that John van der Ent is taking over as chief executive from March 2015. He is currently CEO of the Etam group.

The V&D empire was created in 1887 when Amsterdam shop owners and brothers-in-law Willem Vroom and Anton Dreesmann joined forces. The company has been owned by private equity group Sun Capital Partners since the end of 2010.

Retail unions were briefed by the company on Monday. They say they want more information about the long-term prospects for the company before reaching a decision on how to proceed.

‘The company has not asked us or the workers to agree to this. We understand from V&D that if we don’t accept [the pay cut], much more drastic action will be needed,’ FNV negotiator Niels Sluijter told broadcaster Nos.