More than 2,000 jobs at risk as Edinburgh Woollen Mill collapses into administration
High street giant Edinburgh Woollen Mill has collapsed into administration, putting more than 2,000 jobs at risk in the latest blow to the beleaguered UK retail sector.
The firm, which is owned by billionaire businessman Philip Day, has appointed FRP Advisory as administrators to its Edinburgh Woollen Mill and Ponden Home brands, it announced this evening.
FRP said that 750 Edinburgh Woollen Mill staff and 116 employees of Ponden Home will be made redundant immediately.
Both brands will continue to trade while the insolvency firm searches for a buyer, but the remaining 2,034 jobs are at risk.
In recent weeks 56 EWM and eight Ponden Homes stores had already closed, before the firm entered administration.
The company said today that its other brands, including Jaegers and Peacocks, are not affected by the administration process.
Tony Wright, joint administrator and partner at FRP, said: “Recent months have proven extremely challenging for many retailers, even those that were trading well before the pandemic, including the teams at Edinburgh Woollen Mill and Ponden Home.
“The administrations will provide some further protection while we continue our search for buyers to secure the long-term futures for both businesses.
“Regrettably, the impact of Covid-19 on the brands’ core customer base and tighter restrictions on trading mean that the current structure of the businesses is unsustainable and has resulted in redundancies. We are working with all affected members of staff to provide the appropriate support.”