Jobs to go as Laura Ashley buyout fails
HOPES of a management buyout at the Laura Ashley factories in Newtown have been dashed. It is understood that another 57 staff at Texplan, the warehouse and call centre, were told on Tuesday that they will be made redundant next month.
In March, the iconic fashion and furnishings company, which started life in Merthyr Tydfil, entered administration.
Efforts by Laura Ashley chief executive Katharine Poulter to find a financial backer to buy the stock and freehold to the sites have failed.
She addressed staff explaining the situation.
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.
“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.”
Ms Poulter joined the firm in February and had wanted to be part of “Bringing Laura Back to Greatness”.
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.”
In March, PricewaterhouseCoopers was appointed as Laura Ashley’s administrator.
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.”