High street chain Laura Ashley has announced intention to file for administration.
In a statement, the company confirmed it had filed notices of intention to appoint administrators, and that the move had been made in light of the COVID-19 outbreak's effect on trading.
Prior to this news, the company's owners had been seeking financial support from third party lenders.
"For the seven weeks up to 13th March, trading for the Laura Ashley business improved by 24% year-on-year and the directors were encouraged by this strong performance. However, the COVID-19outbreak has had an immediate and significant impact on trading, and ongoing developments indicate that this will be a sustained national situation," the company said in a statement.
"Discussions with stakeholders have been ongoing and the directors are in advanced discussions for the provision of third-party debt funding. However, 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 brand was founded in London in the 1950s and over the years, became known for its distinctive floral prints. The range has since expanded to include clothing, homewares, furniture and more.
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