Fashion chain Laura Ashley has blamed the impact of coronavirus after today announcing it has filed for administration.
The group had endured a turbulent couple of years, after seeing its profits slump by 98% in 2018, which plunged further into a £14m loss in 2019. A potential £20m takeover also fell through that year.
However, directors have today revealed the coronavirus outbreak – and subsequent spending impact and projections for future spending – had proven too much to withstand, despite improved financial performance in the early part of 2020.
A Laura Ashley statement said: “The company regrets to announce that the directors of the company, and the named subsidiaries, have today filed notice of intention to appoint Robert Lewis and Zelf Hussain as administrators.
“The Covid-19 outbreak has had an immediate and significant impact on trading, and ongoing developments indicate that this will be a sustained national situation.”
The company currently operates around 150 UK stores and employs about 2,700 staff.