More than 2,900 employees are at risk of losing their jobs after it was announced Friday that clothing retailer Edinburgh Wool Mill and homeware supplier Ponden Home were in control.
Both brands are owned by the EWM Group and are negotiating a potential rescue deal that could save the remaining brands, Peacock and Jaeger.
A group spokesman announced the collapse with a stern statement regarding the impact of the coronavirus pandemic, where stores saw their stores near customers for months during lockdown.
“Last month we looked into all possible options to save Edinburgh Wool Mill and Ponden Home to management, but unfortunately the ongoing terms of trading caused by the pandemic and lockdown have turned out too much.
“It’s a heavy heart and we accept that we have no choice but to put our business into management.”
Last month, it was reported that Edinburgh Wool Mill had already permanently shut down several sites in the Cumbria and Scotland’s Highlands after failing to cause sufficient sales to offset losses during the pandemic.
As EWM Group is in a hurry to save the rest of the brands, the Business Advisory Group FRP Advisory was drafted to continuously search for buyers.
FRP co-admin Tony Wright said both Edinburgh Wool Mill and Ponden Home were trading well before the pandemic, but since reopening stores in June, they both have struggled to revive customer engagement levels.
“Unfortunately, the impact of Covid-19 on the brand’s core customer base and the more stringent restrictions on transactions mean that the current structure of the business is unsustainable and has resulted in redundancy.
“We work with members of all affected staff to provide the right support.”
The news comes as the latest blow to the UK’s high streets after dozens of popular names this year had to close to the public.
Edinburgh Wool Mill has been a familiar face to British consumers since its launch in 1947.
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Junior journalist for a British investor magazine. It focuses primarily on finance and business content. I have a personal interest in Middle Eastern politics, human rights issues and sustainability initiatives.
