Retail pressure hits Laura Ashley

LAURA Ashley has been placed in administration for a second time, falling victim to the same forces that have claimed a raft of Australian retailers.

The clothing and home furnishing group, operated under licence from the original Laura Ashley company in the UK, has 18 stores and 100 employees in Australia.

The retailer, famed for its pastels and prints, first fell into administration in January 2016 before being slimmed down and sold to a private buyer six months later.

The same company has run the business since, but KordaMentha Restructuring said Craig Shepard and Leanne Chesser had been appointed voluntary administrators.

“The business has been hurt by the same factors affecting many other fashion retailers: a becalmed retail environment, rising fixed costs and fierce competition from online retailers,” Mr Shepard said.

“The capital requirements to revive and grow the business became too burdensome as retail conditions became tougher.”

Laura Ashley entered Australia in 1971 and, at its peak, had more than 45 stores. It still had 38 stores in 2016. Laura Ashley follows retailers including Roger David, Marcs, Pumpkin Patch, Payless Shoes and Rhodes & Beckett in entering administration, although some brands have survived under new owners.

The first administrators’ meeting is on December 13.

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