SEVEN hundred and fifty jobs at Edinburgh Woollen Mill have been made redundant after the brand went into administration last Thursday.
Tony Wright and Alastair Massey, partners at specialist business advisory firm FRP, were appointed as joint administrators to The Edinburgh Woollen Mill Limited (t/a The Edinburgh Woollen Mill).
They were also appointed administrators of Duvetco Limited (t/a Ponden Home) where 116 roles are now redundant.
It is believed that about 40 jobs in Langholm alone have been lost.
Edinburgh Woollen Mill has 384 stores in the UK and 2,571 staff.
Ponden Home, which sells homeware, curtains, bedding and furniture, has 73 stores and 329 staff.
Both businesses were trading well before the COVID-19 pandemic.
Lockdown restrictions and low consumer confidence and footfall of core customer demographics, including senior shoppers and international tourists, had a significant impact on trading performance.
In recent weeks, before administration, 56 Edinburgh Woollen Mill stores and eight Ponden Home stores and concessions were permanently closed.
Mr Wright, said: “Recent months have proved extremely challenging for many retailers, even those trading well before the pandemic, including the teams at EWM and Ponden Home.
“The administrations will give some further protection while we continue our search for buyers to secure the long-term futures for both businesses.
“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.”
EWM Group and its other subsidiaries, including Jaeger and Peacocks, are not part of the administration.
Retail Gazette reported that Mike Ashley has reportedly expressed his anger after his company Frasers Group was excluded from the auction of three Edinburgh Woollen Mill Group brands.
Frasers Group, which owns Sports Direct, House of Fraser and Evans Cycles, expressed interest in Jaeger, Peacocks and EWM, part of Philip Day’s retail empire, which have been put up for sale.
Insolvency consultants at FRP Advisory, who have been looking for suitors to save some of the brands, “have been unhelpful throughout the process, either refusing to provide or providing very slowly the normal information a buyer would expect”, according to Frasers Group.
Edinburgh Woollen Mill Group responded that all bidders for Peacocks and Jaeger have had “access to the same information and ample opportunity to make an offer”.