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

Second year of devastation for Newcastleton

Up to 30 homes flooded as river Liddel burst banks

 

Langholm groups reap rewards from the wind

Thousands are paid by the Ewe Hill 6 windfarm to…

 

A big surprise

Congratulations to Rowanburn couple

 

Study identifies top 10 projects for funding

Nearly 1,000 ideas proposed on how to use windfarm grants

 

Operation to change boy’s life costs £25k

Joshua turned down in Scotland but Liverpool hospital steps in

 

Do not feed

Horse nearly dies from treats

 

Sports centre redesign is to be scaled back

Flood plain and funding challenge force rethink on Townfoot

 

Feedback will aid bridge plan

Developer seeks views on active travel

 

Multi-purpose centre will attract thousands

Langholm’s regeneration is on track for an enterprising future

 

GP practices join list of vaccination venues

Over 70s can be vaccinated in the first two weeks…

 

No police here

Crimes go unreported and unrecorded

 

Mass testing deployed after cases spike at 41

Langholm and Eskdale has highest number of cases in district

 

New company will run nature reserve

Estate manager will be recruited to implement moorland plan

 

Course to help women set up their own business comes to Liddesdale

LIDDESDALE has been chosen as one of three rural areas…

 

Eskdale COVID-19 cases second highest

Esk valley comes second only to Gretna in the whole…

 

Rail group argues its case to UK review body

Extension to Carlisle will bring economic and social benefits

 

Over 80s welcome call to receive vaccination

The most elderly in Langholm will be vaccinated from next…

 

A danner for Doddie

DODDIE Weir’s story has touched the rugby world. He played…

 

EWM is sold but not all jobs will be saved

CRITICISM has been levelled at the way Tuesday’s sale of…

 

Kerry’s passion for town lands her the dream job

THE Langholm Alliance has announced the appointment of its project…

 

A Kiwi Christmas

Langholm lass sends positive vibes from a land down under

 

More infectious virus forces new lockdown

Measures close schools and businesses as vaccine is rolled out

 

Better early warning system to be devised

Newcastleton villagers are urged to protect their own houses

 

Ploughing halted after breach of conditions

Forestry watchdog steps in to investigate the loss of deep…

 

From King Herod to the Grinch ....

A Christmas message from Rev Morag Crossan

 

Have yourself a Merry LITTLE Christmas now

It’s a Level Four lockdown from Saturday

 

Reindeer are flying

ALAN Miller’s new tartan reindeer are flying off the shelves…

 

Kevin moves to new post

But he will keep an eye on moor

 

New looms help secure Langholm mill’s future

Drove Weavers expands its capability to meet greater demand

 

Camera plan will combat the lack of police presence

Copshaw’s rural isolation adds to concerns

 

Wetter winters and more hot summers

Met Office says emissions must be cut to avoid extreme…

 

Council refuses to endorse sports centre proposals

Flood plain causes yet more planning problems

 

Amazing ceremony for wildlife watchers

Shortlisted Newcastleton group is celebrated at awards night

 

2020 Magic Lantern Show

ONE of Langholm’s theatre companies is determined to do its…

 

Langholm store marks 20 years of shopping

Co-op staff look forward to 2021 and arrival of a…

 

Vaccination roll-out is imminent: NHS chief

Immunisation of high-priority groups will start next week

 

NHS seeks input on plan

Health and social care and support are at centre of…

 

Happy 400th birthday as town marks charter

Alliance invites groups to host events in run-up to main…

 

200m high turbines for two Eskdale sites

Developer pledges £900,000 a year for nearby communities

 

Pupils’ designs are a reminder of the past

Langholm’s textile history inspires bold and striking creations

 
 
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.