The latest in a long chain of retailers going under, Laura Ashley has shocked us all by filing for administration.
The retailer had been set to attend talks with stakeholders to discuss refinancing, but due to the timing of the COVID-19 outbreak and the economic uncertainty caused, the funds needed won’t be secured in time so administration has been filed for.
This means the potential loss of 150 stores and around 2700 staff out of work – we send our love to anyone affected by this.
Laura Ashley have stated:
“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.
The business had been doing well during the seven weeks to March 13, with trading up 24% on the same period a year earlier.
However, the Covid-19 outbreak has had an immediate and significant impact on trading, and ongoing developments indicate that this will be a sustained national situation.”
Their main shareholder, MUI Asia Limited, would not be able to provide the needed funds in time to save the company. This comes after a chain of unfortunate events for Laura Ashley; they suffered a £14 million loss in 2019, as well as the loss of a £20 million bid to purchase the company by Flacks Group.
We’re so sad to see yet another well known and much loved chain go, and very sorry for any of our followers who will lose their jobs. We’re thinking of you all.
Love from Katie & Team BBY. Xx