More than 700 staff lose jobs at Laura Ashley

Laura Ashley has announced the permanent closure of 70 stores, with 721 employees set to lose their jobs.

It comes after the fashion and furnishings retailer announced its intention to hire administrators last week, blaming the impact of coronavirus for tipping it over the edge.

A host of retailers, including John Lewis and Ikea, have announced temporary store closures in the face of the pandemic.

However, Laura Ashley is one of the first to announce permanent closures after the virus exacerbated a recent downturn in profitability.

It said it will continue to trade from its remaining 77 UK stores, which will remain open while online operations also continue to trade.

Last week, the company said it would enter insolvency after rescue talks were thwarted by the coronavirus outbreak, which has heavily impacted high street firms.

It said its administrators will now be working to support employees who are set to be impacted by the raft of closures.

The administrators will also initially focus on talking with interested parties in a bid to secure a buyer for the historic firm.

Katherine Poulter, chief executive officer of the business, said she is “hopeful” that it will find a buyer for the brand.

She added: “I remain unwavering in my belief that Laura Ashley can and should retain the place it deserves in the international retail landscape. Unfortunately, we will lose some brilliant people through no fault of their own.”