: Waiting for next track...

: Waiting for next track...

Laura Ashley files for administration

Laura Ashley files for administration

Published by Henrietta Creasey at 12:24pm 17th March 2020.

Fears for future of Laura Ashley stores

    • Laura Ashley's announced it intends to appoint administrators - becoming the first retail casualty of the coronavirus outbreak.
    • The homeware and fashion chain's collapse could result in 2,700 job losses.
    • At the moment, it puts the stores in Harrogate, Ilkley and Skipton at risk.

The move puts 2,700 jobs at risk at the firms 150 shops including the branches in Harrogate, Skipton and Ilkley.

The company says rescue talks with an advanced lender have now failed and it has seen a "significant" impact on trade with no prospect of an end to the Covid-19 crisis in sight.

The firm, founded in 1953, has been struggling for some time.

A statement released today said:

"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."

"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."

Laura Ashley
Laura Ashley has 150 stores across the country

Laura Ashley shares were trading 96 per cent down. 

The company has requested a suspension of its listing.