Mon, 12 Oct 2020 | ADMINISTRATION
Edinburgh Woollen Mill Group, which owns the retail chains Jaeger, Peacocks and Austin Reed, has filed a notice of intention to appoint administrators. The move could put around 21,500 jobs at risk, with the group blaming “hard trading conditions” due to the COVID-19 pandemic.
The notice of intention provides the group with ten days’ protection from its creditors and its stores will continue to trade as a review into the firm and its options is carried out. EWM Group, which is owned by businessman Phillip Day, has 1,100 stores and concessions.
EWM has been seeking a buyer for several weeks and says it has received several expressions of interest for parts of the group.
Announcing that the firm would appoint FRP Advisory as administrators to carry out a restructuring, EWM Chief Executive Steve Simpson said that “significant cuts and closures” would be inevitable. It has been reported that the group’s online retailers Austin Reed and Jane Norman are likely to close for good.
Smith commented: “Like every retailer, we have found the past seven months extremely difficult. This situation has grown worse in recent weeks as we have had to deal with a series of false rumours about our payments and trading, which have impacted our credit insurance.”
“Traditionally, EWM has always traded with strong cash reserves and a conservative balance sheet but these stories and the reduction in credit insurance, against the backdrop of the initial lockdown, current local lockdowns, and the second wave of Covid-19 reducing footfall, have made normal trading impossible.”
“As directors we have a duty to the business, our staff, our customers and our creditors to find the very best solution in this brutal environment.”
Some analysts have cited the group’s older customer base being reluctant to visit stores during the pandemic as a reason for its struggles, along with its underdeveloped online offering.
An FRP Advisory spokesperson said: "Our team is working with the directors of a number of the Edinburgh Woollen Mill Group subsidiaries to explore all options for the future of its retail brands, including Edinburgh Woollen Mill, Jaeger, Ponden Mill and Peacocks."
View the latest distressed UK businesses here.
Established car sales garage business in Worthing is now available, offering a unique opportunity with an included self-contained one bedroom flat.
LEASEHOLD
An established and newly discounted catering and retail butchers in Southend-On-Sea is now available, offering a unique opportunity for those looking to enter or expand in the food industry.
FREEHOLD
This long-established bakery in Oldham, known for its exceptional reputation since 1964, specialises in quality baked goods.
FREEHOLD
30
|
Jun
|
Specialist electronics manufacturer to be acquired in £20m deal | BUSINESS SALE
Landguard Nexus Limited, a specialist electrical and electro...
30
|
Jun
|
Modella successfully price-chips WH Smith deal by at least 23 per cent | BUSINESS SALE
Back in March 2025, private investment form Modella Capital ...
30
|
Jun
|
IFA consolidator secures £14.5m facility for buy-and-build strategy | BUSINESS NEWS
Futura Financial Services Group, a consolidator of UK indepe...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
We can help you capitalise on insolvent businesses. We list UK businesses in administration, liquidation and with winding up petitions daily. Ensuring our members never miss out on an opportunity
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.