Edinburgh Woollen Mill on brink of collapse, with 24,000 jobs at risk
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Edinburgh Woollen Mill Group, which owns Peacocks and Jaeger, is on the brink of collapse after it filed a notice to appoint administrators, affecting around 24,000 workers.
Steve Simpson, leader of the high street giant said days gone by seven months have already been “extremely difficult” for the company.
He took aim at a trade organisation which claimed that EWM hasn't paid its suppliers in Bangladesh.
“This situation has grown worse in recent weeks as we have had to manage a number of false rumours about our payments and trading that have impacted our credit insurance,” Mr Simpson said.
Earlier this week, EWM warned that a potential takeover of Peacocks have been threatened because of allegations circulated by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
BGMEA claimed that EWM had £27m of unpaid bills with suppliers, a claim that your group denies.
Mr Simpson said: "Traditionally, the group has always traded with strong cash reserves and a conservative balance sheet but these stories, the reduction in credit insurance - against the background of the lockdown - and today this second wave of Covid-19 and all of the local lockdowns, have made normal trading impossible.
Insolvency practitioners FRP are carrying out an urgent review before taking further action. The group’s stores will continue trading and additional details will be announced in due course.
“As directors we've a duty to the business, our staff, our customers and our creditors to obtain the absolute best solution in this brutal environment,” Mr Simpson said.
"So we have applied to court today for a brief breathing space to evaluate our options before moving to appoint administrators.
"Through this process I am hoping and believe we will be able to secure the very best future for our businesses, but there will inevitably be significant cuts and closures as we work our way through this.
Source: https://www.independent.co.uk
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