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LAURA Ashley has collapsed into administration after talks to rescue the chain failed due to the coronavirus.
The clothing and furnishing retailer has been struggling with tough high street conditions.
A few days ago, Laura Ashley warned that it needed to secure £15million to survive.
The company said in a statement: “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 per cent 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,” the company said in the statement to investors.
The news is 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.
In November, Mothercare also collapsed into administration after 58 years on the high street, putting 2,500 jobs at risk.
More to follow…
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