12th Jan 2021 13:19
(Alliance News) - The owner of Edinburgh Woollen Mill is close to securing a deal which may rescue the brand after it crashed into administration last year.
Philip Day is understood to have lined up a series of international investors who will provide the cash it needs to continue trading.
The news, which was first reported in the Telegraph, could provide a potential lifeline for hundreds of staff. However, no details have yet been released.
On Monday, Marks & Spencer Group PLC signed a deal to take over Jaeger, another part of Day's business empire which also entered administration last year. However, M&S did not buy the Jaeger stores, so no jobs are expected to be saved.
Day's deal with the potential Middle Eastern investors, which has yet to be finalised, could prove better for staff. It would likely save the brands of Edinburgh Woollen Mill, Ponden Home and Bonmarche, and the Telegraph reported that investors would inject cash into the business until the point when shops can reopen.
However, the deal will come too late for some. Around one third of the 2,571 employees have already been made redundant.
Edinburgh Woollen Mill Group became one of a string of retailers embarking on a major restructuring during the Covid-19 pandemic when it called in administrators in October.
The high street has faced a double blow since coronavirus restrictions added to the pressure already being exerted by changing shopping habits as customers turn to online retail.
Cath Kidston Ltd, Laura Ashley PLC and Oasis were among the retailers that entered administration last year.
source: PA
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