Coronavirus: Laura Ashley go into administration after talks to rescue the chain fail due to killer bug
LAURA Ashley has collapsed into administration after talks to rescue the chain failed due to coronavirus, putting 2,700 jobs at risk.
The clothing and furnishing retailer has been struggling with tough high street conditions and recently warned that it needed a £15million loan to survive.
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It had been doing well during the seven weeks to March 13, with trading up 24 per cent on the same period a year earlier.
However, it said the coronavirus has "had an immediate and significant impact on trading, and ongoing developments indicate that this will be a sustained national situation".
It added that its main shareholder MUI Asia Limited won't be able to step in with the money which is needed in time.
Laura Ashley said it hired advisers from PricewaterhouseCoopers (PwC) to oversee the administration on Tuesday.
Trouble on the high street recently
LAURA Ashley isn't the only retailer to have struggled recently.
In 2019 and so far in 2020 we've also seen:
- Debenhams axe 22 of its 50 branches
- Forever21 close 350 stores with its UK branches also at risk
- Jamie Oliver's "Jamie's Italian" chain go bust, alongside his Fifteen and Barbecoa restaurants
- Links of London go into administration putting 350 jobs at risk
- Marks and Spencer close 35 more stores as it pushes forward with plans to axe 145 shops across the UK
- Dozens of Monsoon and Accessorize stores close
- While struggling shoe shop Office has said it "could close shops" as part of restructuring plans
- Fears Pizza Express could be next to go into administration as it "brings in emergency advisers"
- Hairdressing chain Supercuts went into administration in October putting 1,200 jobs and 220 salons at risk
- Maternity and baby retailer Mothercare collapsed into administration in November after 58 years on the high street, putting 2,500 jobs at risk
- Department store chain Beales went into administration in January 2020 with 23 shops and 1,052 jobs at risk
- High end fashion brand Ted Baker said it plans to axe 160 jobs in February
- Mobile phone retailer Carphone Warehose said in March that it'll close all 531 standalone stores in April
It couldn't confirm what will happen to the retailer's employees, its stores and whether the website will continue trading when contacted by The Sun.
But Salman Haqqi, personal finance expert at money.co.uk, urged staff to check what redundancy rights you have as well as dig out any income or mortgage protection policies you hold.
He added: "It’s currently unknown whether or not Laura Ashley will honour gift vouchers and refunds now administrators have been called in.
"It isn’t illegal for them to refuse refunds so if you were hoping to return any goods you may be in for a lengthy battle to get your money back."
The firm, which operates 150 stores in the UK, is the first retail casualty of the coronavirus crisis.
So far, the bug has infected more than 184,000 people around the globe, with 1,543 confirmed cases in the UK.
A couple of weeks ago, Flybe collapsed after panic over the coronavirus dealt the carrier's fragile finances a killer blow.
Today's news is also another blow to the struggling high street, which saw department store chain Beales go into administration in January, putting 23 stores and 1,052 jobs at risk.
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In November, Mothercare collapsed into administration after 58 years on the high street, putting 2,500 jobs at risk.
While earlier today, Carphone Warehouse also announced it will close all of its 531 standalone stores, in a move that will lead to 2,900 job losses.
In December 2018, Laura Ashley was forced to close 40 stores across the UK, putting dozens of jobs at risk.