The owner of struggling retailer Laura Ashley is in talks with its lender to secure enough funds to keep trading as it battles"challenging" high street conditions.
Laura Ashley said the discussions between majority shareholder MUI Asia and US bank Wells Fargo came after a tough period in the last six months of 2019 in which sales fell 10.8% to £109.6m. The discussions are aimed at finding a way for the clothing and homewares retailer access the cash it needs to meet"immediate funding requirements" as well as capital for the short to medium term.
"If the group remains unable to access the requisite level of funding, then the company will need to consider all appropriate options," Laura Ashley said.The retailer negotiated a £20m loan from Wells Fargo last year but restrictions on how much it can draw on this money have come into force as stock and customer deposit levels have dropped.
It comes after a latter half of 2019 in which the retailer said it was hit by"market headwinds and weak consumer spending" resulting in a decline in sales of big-ticket items.
Laura Ashley do sell quality goods but they could do with an update to make themselves relevant to today's market (more affordable prices and slightly lower quality for a start) Would be a shame to see them shut down.
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Let’s think about the poor people who may lose their jobs. God help them.
They have some lovely stuff but I can only afford to shop in there in the sales.
Lower prices, design clothes where your target audience are not octogenarians. Learn that 2k is not a good price for a chair that looks like it belongs in an old folks home. 🤷♀️
Mike Ashley incoming ffs
She died years ago. let the company now rest in peace.
Brexit makes excedenly good business sense ta ta how many more 💩
Lower the prices and evolve your business with time. The shops still look the same as they did when my gran used to unwillingly drag me around 30 years ago.
So in steps Mike Ashley!! He’s already half way there! nufc
MoneyMikeAshley
Struggling for best past of 20 years !!
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