Retail Giant Fights for Survival
- EWM marks a small number of stores for closure amid the coronavirus pandemic
- Stores in Penrith, Dingwall, Andover, Oswestry, Newbury, Acomb, East Dereham, Ryde, Shanklin and Washington have closing down sale signs
- Newcastle’s Bonmarché store is the group’s third brand with closing down signs
- EWM granted a 10-day extension to its creditor protection
- Group filed a notice to appoint administrators on October 9th
- Frasers Group reportedly in contention to acquire EWM’s heritage fashion brands Jaeger, Austin Reed and Jacques Vert
The Edinburgh Woollen Mill Group (EWM) is shuttering a small number of stores as it battles to secure its future amid the coronavirus pandemic. Drapers reports that EWM branded stores in Penrith, Cumbria and Dingwall in Scotland closed permanently over the weekend, while stores in Andover, Oswestry, and Newbury reportedly have ‘closing down sale’ signs inside shop windows. Acomb in North Yorkshire, East Dereham in Norfolk, Ryde on the Isle of Wight, and Washington in Tyne and Wear also display closing signs. Staff at these stores are yet to be notified if the closures will be permanent. EWM received a 10-day extension to its creditor protection earlier this month and appointed FRP advisory for a business review. The group filed a notice to appoint administrators on October 9th, aiming for ‘breathing space’ while it assesses options. Reports suggest Mike Ashley’s Frasers Group may acquire EWM’s heritage fashion brands Jaeger, Austin Reed, and Jacques Vert.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the closure of some stores by Edinburgh Woollen Mill Group due to the impact of the Covid-19 pandemic and mentions the appointment of administrators. It also reports on expressions of interest from other companies for parts of the group. The information is based on a reliable source, Drapers, and presents objective details without any clear signs of sensationalism or personal opinion.
Noise Level: 3
Noise Justification: The article provides relevant information about the closure of some stores due to the impact of the Covid-19 pandemic on the Edinburgh Woollen Mill Group. It also mentions the group’s efforts to secure its future by appointing administrators and considering various options for different parts of the business. However, it lacks in-depth analysis or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: The closure of stores and potential acquisition by Mike Ashley’s Frasers Group may impact the stock prices of Edinburgh Woollen Mill Group and other related companies.
Financial Rating Justification: This article discusses the financial struggles of the Edinburgh Woollen Mill Group due to the COVID-19 pandemic, which affects their business operations and future prospects. Additionally, the potential acquisition by Mike Ashley’s Frasers Group may impact stock prices in both companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: The article discusses the impact of the COVID-19 pandemic on a retail group’s financial situation, but there is no extreme event mentioned in the last 48 hours.
www.retailsector.co.uk