THE Matalan Clearance store in Magowan West is to close at the end of July with the loss of around 33 jobs.
Employees were told of the decision on Monday.
A letter issued to staff said that following a review of all Matalan stores, it was decided that the Portadown store was "no longer profitable".
The company confirmed that some compulsory redundanci
es are expected, as it does not expect to be able to redeploy all the employees in other Matalan stores.
A consultation with the affected employees has begun.
The closure shock comes after a week of good news for Portadown, with the opening of two new stores - Ethel Austin and Au Naturale - along with the town's first eastern European restaurant, Yummy Malva.
In further correspondence sent to staff, and obtained by the Portadown Times, Matalan said they had conducted a full review of both the lease agreement and the profitability of the store, and had concluded that it was "no longer financially viable to operate a store in this location".
They said that the costs of keeping the store open, including rent, rates and utilities, were "significantly higher" than paying out redundancy costs.
Councillor Brian McKeown slammed the decision and a number of staff members told the Portadown Times that they had been left feeling "betrayed and let down" by the company's decision to close the store which has been operating for nearly six years.
They added that various options had been looked at for the site, with one key option being to sell the building itself or hand the site back to the landlord on termination of the lease. The decision was taken to return the site to the landlord.
The store is expected to cease trading on July 31 with the final closure a few days later, when fixtures and fittings have been removed.
The letter to staff added, "Matalan intends to help you find alternative employment (either within Matalan or outside) and propose to offer job search assistance where required.
"We will also be speaking to local businesses and to Job Centre Plus in order to identify suitable vacancies."
Sinn Féin Councillor Brian McKeown has called on the company to reconsider its decision. He said, "This is distressing news coming as it does at a time when we were being told by the experts that the economy was now on the upturn. I would ask that Matalan reconsider their 'decision in principle' to abandon this store.
"In the present economic climate, many businesses are struggling to make ends meet and it is not surprising that Matalan may not be making a profit at this particular time. However, there can be no doubt that a firm as big as Matalan can absorb the minimal losses they are experiencing at present and could continue to run this store until the economy improves.
"They may not have a legal obligation to their employees but they do have a moral one and I call on them to put people before profit and reconsider their decision."
The Portadown Times twice phoned Matalan Head Office for a response but none had been received.
