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Fashion retailers Oasis and Warehouse are reportedly set to appoint administrators, placing around 2,000 jobs at risk.
According to Sky News, The Oasis and Warehouse Group, which is owned by Icelandic lender Kaupthing, is set to appoint Deloitte as administrators in the coming days.
It comes after a potential sale of the business to an unnamed company was prevented due to the coronavirus outbreak. It is believed talks for a sale of the business may continue once Deloitte has been appointed.
The group currently operates around 90 standalone stores and 437 concessions around the UK and employs around 2,300 people.
Oasis and Warehouse have been contacted for comment.
Meanwhile Sofie Willmott, lead analyst at GlobalData, believes the news comes after the group was “elbowed out of the overcrowded midmarket”.
She said: “The lack of distinct design handwriting at Oasis and Warehouse, coupled with fierce competition from online pureplays and Zara, alongside their exposure to the struggling department store channel has left the brands in trouble.
“With clothing & footwear expected to be the worst hit UK retail sector this year with spend forecast to fall by over 20%, the Covid-19 pandemic is reportedly set to claim two more victims in Oasis and Warehouse this week.
Willmott added: “Despite Warehouse improving its fashion credentials over the last couple of years and Oasis bolstering its marketing campaigns using celebrities such as Frankie Bridge and Katie Piper, the brands have failed to stand up against stronger players that are more front of mind amongst their target customer base.
“As demand for clothing continues to be decimated by a lack of social occasions, we expect to see further high street casualties over the coming month.”
