Retailer’s Administration Puts Jobs at Risk and Threatens Workers’ Pensions
- Edinburgh Woollen Mill owes creditors over £190m
- Suppliers and landlords among those indebted
- Retailer fell into administration in November
- 50 stores closed, 600 jobs at risk
- Covid-19 pandemic and reduced credit insurance blamed for harsh trading conditions
Philip Day’s Edinburgh Woollen Mill (EWM) owes a staggering £192m to its unsecured creditors, according to FRP Advisory. The retailer, which also owns Country Casuals chain, fell into administration on November 5th, closing 50 stores and putting over 600 jobs at risk due to the impact of Covid-19 pandemic and a reduction in credit insurance. Among its creditors, Smile Outfits is owed £423,524, Bengal Knittex £424,000, Regatta £21,000, and Mountain Warehouse £31,115. The firm also owes the National Grid UK Pension Scheme £115,000, jeopardizing workers’ pensions.
Factuality Level: 8
Factuality Justification: The article provides accurate and relevant information about the financial situation of Philip Day’s Edinburgh Woollen Mill, including the amount owed to creditors, the impact on jobs, and the reasons behind the company’s administration. It also mentions specific creditor amounts and recognisable brands involved. The information is based on a report from FRP Advisory, which adds credibility to the source.
Noise Level: 4
Noise Justification: The article provides relevant information about the financial situation of a retail company and its impact on suppliers, landlords, and employees. However, it lacks analysis or exploration of long-term trends or possibilities, accountability, scientific rigor, intellectual honesty, staying on topic, evidence, data, examples, and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Suppliers and landlords of Edinburgh Woollen Mill
Financial Rating Justification: The article discusses the significant debt owed by the retailer Edinburgh Woollen Mill to its creditors, including suppliers and landlords, which can impact their financial stability and operations. It also mentions the potential risk to workers’ pensions due to the company’s debt.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text. The situation involves a financial crisis with the company Philip Day’s Edinburgh Woollen Mill owing a large sum of money to its creditors, but it does not meet the criteria for an extreme event.
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