Fashion chain Laura Ashley files for administration after rescue talks are thwarted by coronavirus outbreak putting 2,700 jobs at risk
- Retailer said it would not be able to receive emergency funds in sufficient time
- Had been troubled by a lack of cash flow despite recent upturn in sales figures
- Bosses said the outbreak ‘had an immediate and significant impact on trading
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Fashion chain Laura Ashley today filed for administration, putting up to 2,700 jobs at risk, after rescue talks were halted by the coronavirus outbreak.
The troubled retailer had been in talks with stakeholders over refinancing, but it said its ‘revised cash flow forecasts and increased uncertainty’ mean it will not be able to secure these funds in sufficient time.
It said it hired advisers from PwC to oversee the administration.
Laura Ashley, which operates 150 stores in the UK and employs around 2,700 staff, was unable to source emergency cash reserves
Laura Ashley said it had seen an upturn in sales in recent weeks, with trading up 24% year-on-year for the seven weeks to March 13.
However, it said the virus outbreak has ‘had an immediate and significant impact on trading, and ongoing developments indicate that this will be a sustained national situation’.
The retailer operates 150 stores in the UK and employs around 2,700 staff.
In a statement, it said: ‘The company regrets to announce that the directors of the company, and of the named subsidiaries, have today filed notices of intention to appoint Robert Lewis and Zelf Hussain as administrators.
‘If administrators are appointed in respect of the company, given the group’s creditor position, the company is not certain whether there would be any surplus assets available to shareholders of the company.’