“We now have utilized to court docket as we speak for a brief respiration area to evaluate our choices earlier than shifting to nominate directors,” stated CEO Steve Simpson. “There’ll inevitably be important cuts and closures as we work our method by this,” he added.
British firms dealing with insolvency can appoint directors to supply safety towards 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 most important streets, highlighting the unsure prospects that retail employees 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 usually older, in keeping with Patrick O’Brien, head of UK retail analysis at GlobalData.
EWM Group stated it is usually having to cope with “false rumors” regarding its enterprise practices, which it stated have impacted its credit score insurance coverage agreements and damage its funds. The corporate has been accused by suppliers in Bangladesh of not paying for items, in keeping with UK media studies. It denies the claims.
“The discount in credit score insurance coverage, towards the backdrop of the preliminary lockdown, present native lockdowns, and the second wave of Covid-19 lowering footfall have made regular buying and selling unimaginable,” Simpson stated.
