PEACOCKS and Jaeger proprietor Edinburgh Woollen Mill is getting ready to close 50 shops with the lack of 600 jobs because it teeters getting ready to administration.
Final week the group, which owns manufacturers together with Bonmarché and Jaeger, signalled its intention to appoint administrators except consumers got here ahead.
Edinburgh Woollen Mill is constant to speak to unnamed events who could also be involved in shopping for a few of its manufacturersCredit score: Alamy Reside Information
EWM, which employs 21,000, additionally owns Jane Norman, Ponden House and suitmaker Austin Reed.
A leaked restructuring plan confirmed that fifty shops are set to be shuttered imminently.
The retailer declined to remark.
It’s persevering with to speak to unnamed events who could also be involved in shopping for a few of its manufacturers.
Woes comply with poor buying and selling in lockdown coupled with a credit score insurance coverage downside.
The agency has already warned that heavy job cuts and lots of retailer closures lie forward.
However the agency’s administration proposals have reportedly been condemned by the British Property Federation (BPF).
In a letter from representatives of the group, EWM stated directors are reviewing its lease portfolio with a view to figuring out which shops – if any – could also be “retained and/or doubtlessly transferred by the corporate”.
The letter additionally stated {that a} “rationalisation plan has been formulated, which is able to outcome within the closure of over 50 shops throughout the subsequent few days”.
The troubles are regardless of the chain being owned by a billionaire Philip Day.
Bosses claimed allegations the retailer and rivals did not pay some Bangladeshi suppliers throughout lockdown additionally prompted hurt. EWM denies the allegations.
The discount of credit score insurance coverage can scare off suppliers and helped kill off Woolworths ten years in the past.
Edinburgh Woollen Mill is amongst others on the excessive avenue which have been compelled to shut or reduce jobs for the reason that coronavirus.
Thus far the disaster has already seen girls’s style retailers Oasis and Warehouse disappear from the high street in a transfer that noticed 1,800 jobs misplaced.
Laura Ashley also closed all of its 150 stores placing 2,700 jobs in danger.
Whereas go well with store TM Lewin shut all 66 outlets placing 600 jobs in danger.
Even excessive avenue stalwart M&S has confirmed it will ditch 7,000 shop floor worker roles.
