Retailer Faces Uncertainty and Job Cuts
- Laura Ashley appoints third administrator amid Covid-19 crisis
- PwC’s Rachael Wilkinson joins existing administrators Rob Lewis and Zelf Hussain
- Company filed for administration due to cashflow issues and uncertainty
- 268 employees made redundant, 1669 furloughed
Embattled retailer Laura Ashley has appointed Rachael Wilkinson from PwC as a third administrator to support the business amidst the ongoing Covid-19 pandemic. This comes after Rob Lewis and Zelf Hussain were already appointed on 17 March when the company filed for administration due to cashflow issues and increased uncertainty. The company had seen a 24% year-on-year trading improvement up to 13 March, but the outbreak halted this progress. Laura Ashley stated that it could not draw down additional funds from third party lenders in time to support working capital requirements, leading to the appointment of administrators. On 1 April, 268 employees were made redundant and a further 1669 furloughed due to the company’s financial situation.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Laura Ashley’s appointment of a third administrator amidst the coronavirus pandemic and its impact on the company’s financial situation. It also mentions the redundancies and furloughs that have occurred as a result. The information is relevant, well-researched, and free from sensationalism or personal opinions.
Noise Level: 3
Noise Justification: The article provides relevant information about Laura Ashley’s appointment of a third administrator and the impact of the coronavirus pandemic on the company. However, it lacks in-depth analysis and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Laura Ashley Holdings and related companies
Financial Rating Justification: The article discusses the financial struggles of Laura Ashley, a retailer that has filed for administration due to the impact of the COVID-19 pandemic on its business operations. This affects the company’s ability to draw down funds from third party lenders and leads to job losses among its employees.
Presence Of Extreme Event: Yes
Nature Of Extreme Event: Financial Crisis
Impact Rating Of The Extreme Event: Major
Extreme Rating Justification: The extreme event is the financial crisis caused by the COVID-19 pandemic, which has negatively impacted Laura Ashley’s trading and cashflow, leading to the appointment of a third administrator and job losses.
www.retailsector.co.uk 
