Nearly 900 jobs lost as high street retailers collapse into administration

Almost 900 jobs have been lost with the collapse into administration of Edinburgh Woollen Mill and Ponden Home.

Carlisle-based group EWM filed a notice to appoint administrators on October 9, putting up to 24,000 jobs at risk, including its other brands Peacocks, Bonmarche and Jaeger.

But today it was confirmed that the Edinburgh Woollen Mill and Ponden businesses have been put into administration with the loss of 750 Edinburgh Woollen Mill staff and 116 at Ponden. Hundreds of jobs had already been lost after 64 stores were shut last month.

A spokesperson for EWM Group said: “Over the past month we explored all possible options to save Edinburgh Woollen Mill and Ponden Home from going into administration, but unfortunately the ongoing trading conditions caused by the pandemic and lockdowns proved too much.

“It is with a heavy heart we acknowledge there is no alternative but to place the businesses into administration.”

Tony Wright, joint administrator from business advisory firm FRP, said both Edinburgh Woollen Mill and Ponden were trading well before the coronavirus pandemic and so FRP would continue to search for buyers for both businesses.

He said: “Regrettably, the impact of COVID-19 on the brands’ core customer base and tighter restrictions on trading mean that the current structure of the businesses is unsustainable and has resulted in redundancies.

“We are working with all affected members of staff to provide the appropriate support.”

Both brands will continue to trade for the time being.

EWM is owned by Stockport-born billionaire Philip Day who said: “Over the past month we explored all possible options to save Edinburgh Woollen Mill and Ponden Home from going into administration, but unfortunately the ongoing trading conditions caused by the pandemic and lockdowns proved too much.”

The race is now on to try and save the Peacocks and Jaeger brands.

Mr Day is understood to be working on a pre-pack deal for Peacocks that involves the 400-store chain going through administration and then being sold back to him, which could safeguard around 10,000 jobs.

Sports Direct owner Mike Ashley has been linked with a bid for Jaeger.