“Now we have utilized to court docket at the moment for a brief respiratory area to evaluate our choices earlier than transferring to nominate directors,” stated CEO Steve Simpson. “There’ll inevitably be important cuts and closures as we work our method by way of this,” he added.
British firms dealing with insolvency can appoint directors to offer safety in opposition to collectors. Nevertheless it means handing over management to the directors, and the method can result in the enterprise being closed down.
These cuts have been introduced earlier than native lockdowns and a second wave of coronavirus hit Britain’s malls and foremost streets, highlighting the unsure prospects that retail staff face.
Edinburgh Woollen Mill is in a very robust place as a result of lots of its shops are within the north of Britain, the place restrictions have been tightened greater than elsewhere. Its clients additionally are typically older, in accordance with Patrick O’Brien, head of UK retail analysis at GlobalData.
EWM Group stated additionally it is having to cope with “false rumors” regarding its enterprise practices, which it stated have impacted its credit score insurance coverage agreements and harm its funds. The corporate has been accused by suppliers in Bangladesh of not paying for items, in accordance with UK media stories. It denies the claims.
“The discount in credit score insurance coverage, in opposition to the backdrop of the preliminary lockdown, present native lockdowns, and the second wave of Covid-19 decreasing footfall have made regular buying and selling unimaginable,” Simpson stated.