Laura Ashley has filed for administration, blaming coronavirus for scuppering its plans to secure more cash to stay afloat.
The retailer has been seeking additional funding to stay afloat, stating earlier this month that it will need cash by the end of March for a turnaround plan. But in a statement released today, the outbreak of coronavirus has scuppered funding talks and “has had an immediate and significant impact on trading”.
PwC has now been appointed as administrator. In a statement it said: “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.”
Main shareholder Mui Asia was not able to provide the cash needed to keep the company afloat in time. The business was looking to secure an additional £10m credit facility from the chief shareholder.
According to Radius Data Exchange, Laura Ashley owns 151 stores in the UK, with this national portfolio covering 702,301 sq ft.
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