Fashion chain Laura Ashley files for administration after rescue talks are thwarted by Coronavirus outbreak
Fashion chain Laura Ashley has said it has filed for administration after rescue talks were thwarted by the coronavirus outbreak.
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.
‘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.’
Exterior of the Laura Ashley store on Oxford Steet in London
The business had been doing well during the seven weeks to March 13, with trading up 24% 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.
Main shareholder MUI Asia Limited will not be able to step in with the money which is needed in time, Laura Ashley said.