Laura Ashley’s owners have filed an intention to appoint administrators and have suspended trading, blaming the coronavirus pandemic for a “significant” impact on trading.
In a note on the London Stock Exchange, Laura Ashley said it would no longer be able to continue to afford to borrow from its lenders and its majority owner MUI would be “unable to provide financial support in the required timeframe”.
As a result, the retailer said it had appointed Robert Lewis and Zelf Hussain as administrators.
The retailer said in the seven weeks trading to March 13, it had seen sales improve 24% year on year; however, coronavirus’ effect on trading had in turn massively reduced the business’ cash flow and forced it to wind up.
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