Dorchester shop at risk as Laura Ashley files for administration

Dorchester shop at risk as Laura Ashley files for administration

Published by Henrietta Creasey at 2:20pm 17th March 2020.

The fashion and furnishing retailer says rescue talks have been thwarted by the coronvairus outbreak.

The move puts 2,700 jobs at risk at the firms 150 shops including the Dorchester branch.

The company says rescue talks with an advanced lender have now failed and it has seen a "significant" impact on trade with no prospect of an end to the Covid-19 crisis in sight.

The firm, founded in 1953, has been struggling for some time.

Laura Ashley Salisbury

A statement released today said:

"Based on the company's revised cashflow forecasts and the increased uncertainty facing the group, the company expects that it will not be in a position to draw down additional funds from third party lenders in a timely manner sufficient to support working capital requirements."

"The directors of the company, its key trading subsidiary (Laura Ashley Limited), Premier Home Logistics Limited, Laura Ashley Investments Limited, and Texplan Manufacturing Limited, have concluded that all available alternative options have been explored and therefore, in order to protect creditors, it is necessary to file a notice of intention to appoint administrators in respect of the company and each of the named subsidiaries."

Laura Ashley shares were trading 96% down. 

The company has requested a suspension of its listing.