UK Firm Leads as Laura Ashley Falls Into Administration
The company indicated that the COVID-19 outbreak contributed to its collapse.
March 18, 2020 at 08:29 AM
2 minute read
Travers Smith has picked up the lead role in advising on the administration of homeware brand and fashion chain Laura Ashley.
Citing the impact of COVID-19 as a contributing factor to its collapse, Laura Ashley said in a statement released Tuesday that it has appointed Robert Lewis and Zelf Hussain of PwC as joint administrators.
The administration puts at risk the brand's 155 stores worldwide, including across the U.K, Europe and Japan, and its more than 2,700 employees, according to a person with knowledge of the situation.
According to the company's statement, while in the weeks leading up to March 13 there was a 24% rise in sales, "the COVID-19 outbreak has had an immediate and significant impact on trading, and ongoing developments indicate that this will be a sustained national situation".
Leading for Travers is restructuring partner Peter Hughes alongside pensions partner David James, commercial partner Ben Chivers and employment partner Tim Gilbert.
This is the latest high profile restructuring mandate for Travers, which last summer acted alongside Charles Russell Speechlys in restaurant chain Pod's administration.
Last month, restructuring lawyers told Law.com's U.K. arm Legal Week that distressed companies could face financial difficulties in light of coronavirus.
However, high street retailers have faced financial hardship for a while now, owing in large part to competition from online retailers. Earlier this year, U.K. department store Beales was advised by DLA Piper on its administration.
Elsewhere, low-cost airline Flybe also fell into administration earlier this month, with Bryan Cave Leighton Paisner advising.
READ MORE:
BCLP Steps In as Flybe Enters Administration
Coronavirus 'to Boost Litigation and Restructuring Work', Lawyers Say
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