Oasis and Warehouse go into administration with 1,800 staff furloughed
FASHION giants Oasis and Warehouse have gone into administration.
The announcement means that 1,800 staff will be placed on furlough, while 202 have been made redundant, as the owners try to find a way to continue operating the business.
Professional services firm Deloitte has been appointed to manage the process.
The wider Oasis and Warehouse group, which also includes men’s fashion website The Idle Man, currently employs 2,000 people in the UK.
A total of 41 head office roles will be retained for now to assist the administrators.
Oasis, Warehouse and Idle Man will continue to trade online while the administrators work out the options for the brands’ futures.
The retailers trade from 92 standalone stores in Britain, plus 437 concessions located inside other shops.
It is not yet clear how many of those stores may close.
Retailers which could disappear from the high street
THESE retailers have all revealed problems in the last few weeks
- Brighthouse fell into administration at the end of March
- Cath Kidston has been put up for sale to save it from collapse, and administrators are also set to be appointed
- Debenhams entered administration earlier this month so it can continue trading but will close 39 stores
- Laura Ashley announced it was going into administration last month
- Oasis and Warehouse announced they were on the edge of administration earlier this week
- Shoe shop Office has been put up for sale
The brands’ operations in Ireland, Sweden and worldwide franchise partners are not affected by the administration process.
Rob Harding, joint administrator at Deloitte, said: “Covid-19 has had a devastating effect on the entire retail industry and not least the Oasis Warehouse group.
“Despite management’s best efforts over recent weeks, and significant interest from potential buyers, it has not been possible to save the business in its current form.
“Therefore today it has been placed into administration.
“As administrators we appreciate the cooperation and support from the management, employees, customers, landlords and suppliers, whilst we investigate options for the business.
“This is clearly an unprecedented and difficult time.”
What is administration?
ADMINISTRATION is when all control of a company is passed to an appointed administrator.
The administrator has to be a licensed insolvency practitioner.
Their goal is to leverage the company's assets and business to repay creditors, so it doesn't necessarily mean the end of a business.
Administration is slightly different to liquidation.
Where administration aims to help the company repay its debts, liquidation is the process of selling all assets and then dissolving the company completely.
The news comes amid dire warnings for the British economy, which is facing its worst GDP slump in a single quarter since records began in 1908.
As the UK coronavirus death toll hit 12,107, the full scale of the Covid-19 meltdown emerged in government figures which predicted the country’s economy may be slashed by a record 35 per cent by June.
Unemployment could rocket to 3.4 million and the deficit may spiral to £218 billion this year, the Office for Budget Responsibility warned.
British high streets have been hit particularly hard: research released today suggested that half of retailers face administration by the end of the summer due to the coronavirus lockdown.
Hash Ladha, chief executive of Oasis Warehouse, praised the “hard work and dedication” of the company's staff.
“This is a situation that none of us could have predicted a month ago, and comes as shocking and difficult news for all of us,” he said.
“We as a management team have done everything we can to try and save the iconic brands that we love.
“These are amazing brands and the business is full of tenacious, talented and determined people.
“I am confident that my colleagues, together with Deloitte, will find the best outcome for the business.”
Oasis and Warehouse stores are currently closed across the UK in line with government guidelines following the coronavirus outbreak.
The news tops a shocking few weeks for UK retailers, with Debenhams, Cath Kidston and Office some of the brands facing an uncertain future.
Meanwhile in the US, retail sales fell 9 per cent in March.