Laura Ashley may call in administrators
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Malaysian-owned clothing and home furnishings retailer Laura Ashley may go into administration if it fails to secure £15 million (US$18.44 million) in loans from Hilco Capital.
According to reporting in Retail Gazette, the firm is currently in talks with the Homebase garden center business owner for the emergency loan to avoid collapse by the end of this month. The business has said its operations have not been strongly affected by the coronavirus outbreak but has otherwise experienced a challenging year’s trading.
The firm suffered a 166-per-cent loss in the December financial half-year, with a sales drop of 10.8 percent amidst poor market conditions and the spectre of Brexit. Last year, the business lost 60 percent of its share value.
The firm currently operates 150 UK stores and around 2700 staff will be affected if the business fails.
Questions & Answers
Q.What is Laura Ashley's current financial situation?
What is Laura Ashley's current financial situation?
The firm suffered a 166-per-cent loss in the December financial half-year and a 10.8 per cent sales drop. Last year, the business also lost 60 per cent of its share value due to poor market conditions.
Q.How many staff and stores are at risk if Laura Ashley fails?
How many staff and stores are at risk if Laura Ashley fails?
Laura Ashley currently operates 150 UK stores. If the business fails, approximately 2700 staff members would be affected by the collapse.
Q.What are the primary reasons cited for Laura Ashley's financial difficulties?
What are the primary reasons cited for Laura Ashley's financial difficulties?
The company has experienced a challenging year due to poor market conditions and the spectre of Brexit. Despite this, its operations have not been strongly affected by the coronavirus outbreak.
Q.Who is Laura Ashley negotiating with for an emergency loan?
Who is Laura Ashley negotiating with for an emergency loan?
Laura Ashley is currently in talks with Hilco Capital, the owner of the Homebase garden center business. They are seeking £15 million to avoid going into administration by the end of this month.