2,700 jobs at risk as Laura Ashley files for administration due to COVID-19
A high street fashion retailer has announced that 2,700 employees could lose their jobs as it files for administration.
Laura Ashley, which has headquarters in Fulham, has reported that it has filed for the appointment of administrators following the effect of COVID-19 on its business.
The company said that the coronavirus outbreak has had “an immediate and significant impact on trading”.
It currently employs around 2,700 people, and has 150 stores in the UK.
The company commented: “Discussions with stakeholders have been ongoing and the directors are in advanced discussions for the provision of third-party debt funding.
“However, based on the company’s revised cashflow forecasts and the increased uncertainty facing the group, the company expects that it will not be in a position to draw down additional funds from third party lenders in a timely manner sufficient to support working capital requirements.
“MUI Asia Limited has confirmed that it is unable to provide financial support in the required timeframe.
“The directors of the company, its key trading subsidiary (Laura Ashley Limited), Premier Home Logistics Limited, Laura Ashley Investments Limited, and Texplan Manufacturing Limited, have concluded that all available alternative options have been explored and therefore, in order to protect creditors, it is necessary to file a notice of intention to appoint administrators in respect of the company and each of the named subsidiaries.
“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.”
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