Ian Payne 4am - 7am
Fashion giant Edinburgh Woollen Mill Group on brink of collapse
9 October 2020, 12:01
High Street fashion giant Edinburgh Woollen Mill Group, which owns the Peacocks and Jaeger brands, is on the brink of collapse after it filed a notice to appoint administrators, affecting around 24,000 workers.
Steve Simpson, chief executive of the EWM group said: "Like every retailer, we have found the past seven months extremely difficult.
"This situation has grown worse in recent weeks as we have had to deal with a series of false rumours about our payments and trading which have impacted our credit insurance.
"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 backdrop of the lockdown - and now this second wave of Covid-19 and all the local lockdowns, have made normal trading impossible.
"As directors we have a duty to the business, our staff, our customers and our creditors to find the very best solution in this brutal environment.
"So we have applied to court today for a short breathing space to assess our options before moving to appoint administrators.
"Through this process I hope and believe we will be able to secure the best future for our businesses, but there will inevitably be significant cuts and closures as we work our way through this.
"I would like to thank all our staff for their amazing efforts during this time and also our customers who have remained so loyal and committed to our brands."