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The joint administrators appointed to Laura Ashley revealed they have made 268 members of staff redundant and have furloughed a further 1669.
Last week, Rob Lewis and Zelf Hussain of PwC were appointed as joint administrators of Laura Ashley Holdings plc and since then they have continued to trade the business whilst engaging with interested parties with the aim of securing a buyer.
However, the administrators said “regrettably” due to the financial position of the business, it is “not viable” to retain or furlough all employees. As such, 268 employees across a number of head office and back office functions have been made redundant.
Laura Ashley closed all 147 UK stores on 23 March, with 70 closing permanently following a review of their “longer term viability”, whilst the balance of stores were closed following UK Government guidance around Covid-19.
The administrators have now said it is anticipated that all stores will reopen (when guidance permits) for a period of time, either because the stores form part of a sale of the business or to sell through the stock on hand.
The joint administrators will also continue to trade the e-commerce business as normal while discussions take place with interested parties with the aim of securing a buyer.
Rob Lewis, joint administrator and PwC partner, said: “It is obviously disappointing to have to announce redundancies at what is already a challenging time for individuals dealing with COVID-19 disruption. However, we have taken this difficult step to improve the viability of the business whilst we continue to engage with interested parties around a potential sale.
“We will, of course, provide all affected staff with the necessary support during this difficult time, which will include working with various agencies and employers who have vacancies. We will also be providing support to those staff and the many remaining staff in the group’s operations in Newtown, Coalville and head office in Chelsea.”
He added: “We would like to thank the employees for the support, service and cooperation they have provided to Laura Ashley, both before and during the period of administration to date.
“Alongside supporting staff, our key objective as administrators is to progress the solid expressions of interest from parties who are interested in acquiring the business. We believe there is strong value in the group and the brand, and we remain focused on doing all we can to achieve a sale.”
