Laura Ashley, which has been seeking emergency funding, has filed notice to appoint PwC as administrators. The retailer had been engaged in talks with a lender and had also had its name linked with Hilco in assorted reports. Many suggesting that Hilco could provide a lifeline for the business, whilst leveraging its Homebase chain to create concession space for Laura Ashley home decor and furniture ranges in well-heeled catchment areas, enabling high rent stores to be closed or scaled back. Laura Ashley currently trades from 150 UK stores.
In a statement, Laura Ashley’s board said: “For the seven weeks up to 13th March, trading for the Laura Ashley business improved by 24 per cent year on year and the directors were encouraged by this strong performance. 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.
“Discussions with shareholders have been ongoing and the directors are in advanced discussions for the provision of third-party debt funding. However, based on the company’s revised cashflow forecasts and the increased uncertainty facing the group, the company expects that it will not be in a position to draw down additional funds from third-party lenders in a timely manner to support working capital requirements.”
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