Menu
 
Home | News | EWM collapses with 750 jobs lost
 
News | 12th November 2020
 

EWM collapses with 750 jobs lost

About 40 staff are made redundant as administrators take over

 
 
The former EWM headquarters at Waverley Mills, Langholm
 

SEVEN hundred and fifty jobs at Edinburgh Woollen Mill have been axed 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.

The administrators confirmed that 56 Edinburgh Woollen Mill stores have now permanently closed, along with eight Ponden Home shops.

Continue to trade

The remaining 328 Edinburgh Woollen Mill and 65 Ponden Home stores will continue to trade, while a buyer is sought.

A charge was registered against the group in March and August this year, which makes Day a secured lender. He is first in the queue of creditors to recover debts.

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.

Trading conditions

A spokesperson for EWM Group said: “Over the past month we explored all possible options to save EWM 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.

“We will continue to do all we can to support FRP Advisory in trying to secure the best outcome possible for these businesses in these sad circumstances.”

“In the case of Peacocks and Jaeger we are speaking to a number of parties who are interested in either buying parts of the business or offering investment and those conversations are ongoing.

“We are pleased that the High Court agreed to extend the breathing space for those companies for another two weeks to give us more time to work on the details and further pursue these opportunities.”

Retail Gazette reported that Mike Ashley had 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 had had “access to the same information and ample opportunity to make an offer”.

Langholm Alliance

Nicol Nicolson, Langholm Alliance’s community enterprise manager, said: “The alliance extends its deepest sympathies to all local workers who have given years of loyal service to EWM.

“After the disappointing upheaval of relocation to Carlisle, they have been hit by an even crueller blow.

“Our community action plan outlines a clear commitment to create employment opportunities in the years ahead and encourages small enterprises to grow sustainably with all the support available to us.

“I’d encourage anybody concerned about employment prospects to contact me and I’ll do my utmost to connect those people with the expertise at hand.”

 
 
Would you like to support us?

The Eskdale and Liddesdale Advertiser is our community owned local newspaper and even in today’s troubled times, we aim to bring you local news and articles in an impartial, responsible and factual way.

We hope you have enjoyed reading this free article but we need your support so we can keep delivering quality journalism that’s open and independent and keeps you up to date with what is happening in Eskdale and Liddesdale.

Every reader’s contribution, however big or small, is so valuable to us.
 
 
‘Owned by the Community...Published for the Community’
Do you have a story?

Please get in touch if you have a story or article you would like to see published.

Related Articles

Organisations benefit from Recovery Fund

RECOVERY funding has been secured for six organisations in Langholm.…

 

Marathon adventure

Eskdalemuir man runs for special charity

 

Borderlands bid rejected

City of Culture not coming our way

 

Brexit given as reason for demise of LEADER

Langholm received around £260,000 in funding from the project

 

SURF award shortlist for Old Police Station

Langholm affordable accommodation project up for prestigious award

 

Walk on the wild side

THE Langholm Initiative will celebrate Community Land Week Scotland with…

 

Up for auction again

‘Standout’ property needs extensive repairs and renovation

 

Copshaw Holm on film

A SHORT film has been created showcasing the payoff from…

 

A Modelling career awaits Langholm teen

Sam Cook signs up with London agency and hits the…

 

Frustration over X95

UNHAPPY locals are calling on Borders Buses to increase the…

 

A stitch in time

400 years marked with wonderful tapestry

 

Over 50’s boosters and jabs for 12-15 year olds

D & G team are readying the plans to roll out the…

 

Local sorting office threatened with closure

Royal Mail property review leaves Langholm in limbo

 

Chilli festival coming to Langholm

Self-confessed chilli capital of Scotland to host first ever ChilliFest

 

Public consultation on flood proposals promised

Councillor says ‘Ditch the Drain’ campaigners are being heard

 

Resurfacing works to result in A7 road closures

A7 road BEAR Scotland

The A7 will be closed between Canonbie and Hawick between…

 

Call for unvaccinated to come forward for jabs

Covid passports to be introduced in Scotland for those aged…

 

Talk to the Tarras team

Drop in every Wednesday for a chat

 

Muckle Toon Media welcomes new chairman

An optimistic John Hammond picks up the reins of the…

 

Over 100 residents attend heated flood defence meeting

Calls for renewed consultation with both regional and community councils

 

Kat joins Tarras team

Kat Mayer takes up her role as project and education…

 

Recycling Centre on the cards for Langholm

92% want to have the opportunity to dispose of garden…

 

National labour crisis felt by local businesses

Shortage of 100,000 drivers impacts on deliveries across the UK

 

FTS management duo gain prestigious degree

TWO local dyers have become the first to graduate from…

 

Canonbie Surgery relocates for major building repairs

EMERGENCY building repairs will be undertaken at Canonbie Surgery following…

 

Scaffolding fixed but what happens next?

Council forced to carry out repairs before something dreadful happens

 

Memorial centenary

THE 100th anniversary of the Langholm war memorial in Buccleuch…

 

Cleaning at the Kirk

Great team effort is appreciated

 

The Passion Remains

ONCE again, a much-reduced version of Langholm Common Riding was…

 

School transfer news

Langholm Alliance to consult on use of former primary building

 

Langholm Town Centre Building in danger of collapse

Fears that falling scaffolding and masonry may kill or injure

 

Our dream jobs

Two new managers appointed at reserve

 

Town's revival starts to come to fruition

Langholm Alliance has contributed £15,000 to boost activities

 

Engineering a future

Academy pupils awarded Industrial Cadet certificates

 

Rachel hands over the reins to Danielle

E&L Advertiser’s new community editor takes up her new post

 

Full steam ahead for ambitious enterprise

Planners give green light to the conversion of former BFA…

 

Langholm People

OutPost Arts sets portrait challenge

 

Community purchase of school on Knife-edge

THE future of Langholm’s former primary school as a vital…

 

War Memorial improvements

LANGHOLM Social Club is pleased to announce that, after much…

 

Town’s flood scheme is ready for public airing

Once COVID-19 restrictions ease, council will meet residents

 
 
requires mailchimp logins and wired up to a list
Join our mailing list
Keep up to date with all that’s going on at the E&L
This site uses cookies.
Configure
 
Read our privacy policy

This site uses cookies for marketing, personalisation, and analysis purposes. You can opt out of this at any time or view our full privacy policy for more information.