A management buyout bid to acquire iconic Welsh fashion brand Laura Ashley out of administration and revive its fortunes has failed.
Chief executive of Laura Ashley, Katharine Poulter, was seeking to strike a deal with joint administrators from PwC, to create a new company that would have seen its 海角视频 operations focused on its Newtown manufacturing base, safeguarding around 400 jobs with the potential to create new ones as well.
Having joined the business in January, she was seeking to raise between £5m to £10m to acquires the firm's Texplan factory and remaining stock from administrators, as well as securing additional working capital.
Laura Ashley's 海角视频 fashion to home furnishing business, was put into administration in March after years of financial difficulties.
Ms Poulter's plan was focused around increasing existing manufacturing capacity at the Powys factory, as well as exploring where it could re-shore garment production back to Wales.
The Newtown site also supports logistics, distribution and back office operation, where more redundancies were announced earlier this week.
Her plans could also have seen all Laura Ashley 海角视频 operations consolidated at Newtown, including relocating its HQ in London and distribution operations in the Midlands.
It is understood that Ms Poulter and her team had secured a potential private equity backer, while the Welsh Government was looking at a sale and lease of the Newtown factory to support the new company.
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Unless another going concern bid can materialise, and that is now extremely unlikely, hundreds of the remaining jobs in Newtown will be lost. All existing Laura Ashley 海角视频 stores now face closure after reopening for a fire sale of remaining stock, with hundreds of more jobs losses.
Joint administrators sold the branding rights to Laura Ashley to US-based advisory and investment firm Gordon Brothers in a multi-million pound deal in April. A statement of affairs lodged with Companies House showed a realisable value of £20.8m on the branding and intellectual property.
Ms Poulter would have required a deal with Gordon Brothers for the business to trade in the 海角视频. The branding rights deal meant that getting backing for her buyout bid, while not insurmountable, was more challenging.
Her plan was to pivot the business to have a greater online presence and selling through concessions, while keep around 40 stores experience stores that would have supported online purchasing.
In a statement to staff, Ms Poulter, said: “We have put up an extraordinary fight striving to secure funding for Laura Ashley to re-emerge as a radically transformed but profitable going concern. The quality of our robust turnaround plans has attracted much buyer interest and Welsh Government support.
“I tell you this because, while it doesn’t make what I have to share any easier, it shows that our turnaround approach and actions have been logical and rigorous.
“Everyone in our Laura Ashley family has pulled together and delivered everything possible to give our business operations the best chance of continuing as a going concern. Time and events have conspired against us.
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“It is now increasingly unlikely that we will be able to secure a going concern for retail and manufacturing operations. We left absolutely no stone unturned in our quest to save the operational heart and soul of the business.”
Newtown East Powys county councillor Joy Jones said: “It’s really sad and so hard for the workforce and families. It will have a huge impact on the area.”
Joint administrator and PwC partner Rob Lewis said: “The news is extremely disappointing and it is with real regret that we have to announce redundancies at what is already a challenging time for individuals dealing with Covid-19 disruption. We will, of course, provide all affected staff with the necessary support.
“The company is continuing to trade to sell the stock on hand and we would like to extend thanks to all Laura Ashley employees for their continued support, service and co-operation both before and during the administration.
“We still believe there is value in the group and we remain open to interest.
“However, should a going concern sale not be possible, we may be required to initiate a controlled store closure programme."