Menu
 
Home | News | EWM TO CLOSE 200 STORES IN NEXT FORTNIGHT
 
News | 9th October 2020
 

EWM TO CLOSE 200 STORES IN NEXT FORTNIGHT

24,000 Jobs are at risk

 
 
 

THE Edinburgh Woollen Mill Group intends to close more than 50 EWM stores in the next few days followed by another 100 to 150 in the next two weeks, it has been revealed.

Correspondence has been received by the E&L Advertiser over the company’s intentions.

The document says: “In anticipation of the company going into administration, the company and proposed administrators are reviewing the company’s lease portfolio.

“This is with a view to which stores, if any, may be retained and / or potentially transferred by the company, acting by the administrators, to any prospective purchaser of the business and assets of the company.

“A rationalisation plan has been formulated and will be implemented immediately.

“This will result in the closure of more than 50 stories within the next few days and it is anticipated that a further 100 to 150 stores will be closed during the next fortnight.”

It added: “The company’s directors will work closely with the proposed administrators to try to mitigate any loss to the company’s creditors.

“As part of this, they will explore the possibility of selling its business and assets after the administrators are appointed.”

It revealed there were several parties interested in exploring a potential acquisition, including the option of a company controlled by some of the existing directors.

The document added: “Failure to identify a suitable buyer and completion of a sale of the business and assets would likely lead to liquidation.”

News broke this morning that the Edinburgh Woollen Mill Group had filed a notice to appoint administrators, with 24,000 jobs at risk.

According to Sky News, the high street fashion chain, which was founded in Langholm and owns Peacocks and Jaeger, lodged a notice of intention to appoint administrators to look for potential buyers to help keep the business afloat.

The company’s headquarters moved from Langholm to Castle Street in Carlisle two years ago.

Bosses told staff this morning that national and local lockdowns, brought in by the government because of the coronavirus pandemic, had hit sales hard.

The company also blamed allegations, which it denied, that it and several rivals failed to pay some Bangladeshi suppliers during lockdown in an attempt to cut the cost of clothes they were unlikely to sell.

A statement issued by the company said: “EWM Group, owner of a number of Britain’s most iconic retail brands, including Edinburgh Woollen Mill, Peacocks and Jaeger, is responding to the harsh trading conditions caused by the impact of the COVID-19 pandemic and a recent reduction in its credit insurance by launching a review of its businesses in a drive to secure their future.

“The Group has filed a notice of intention to appoint administrators with the High Court today.

“This gives the business necessary breathing space while it assesses the various options available.

“In recent weeks EWM has received a number of expressions of interest for various parts of the group and these are being assessed, along with all other options.

“At the end of this process the Group will appoint FRP Advisory as administrators who will carry out the necessary restructuring of the wider business.”

Steve Simpson, chief executive of EWM, said: “Like every retailer, we have found the past seven months extremely difficult.

“This situation has grown worse in recent weeks. We have had to deal with a series of false rumours about our payments and trading which have impacted our credit insurance.

“Traditionally, EWM has always traded with strong cash reserves and a conservative balance sheet but these stories and the reduction in credit insurance against the backdrop of the initial lockdown, current local lockdowns and the second wave of COVID-19 reducing footfall have made normal trading impossible.

“As directors, we have a duty to the business, staff, customers and creditors to find the very best solution in this brutal environment.

“We have applied to court today for a short breathing space to assess our options before moving to appoint administrators.

“Through this process I hope and believe we will be able to secure the best future for our businesses but there will, inevitably, be significant cuts and closures as we work our way through this.

“I would like to thank all our staff for their amazing efforts during this time and also our customers who have remained so loyal and committed to our brands.”

Mr Simpson took aim at a trade organisation which claimed EWM had not paid its suppliers in Bangladesh. 

Earlier this week EWM warned that a potential takeover of Peacocks had been threatened because of allegations circulated by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

BGMEA claimed EWM had £27m of unpaid bills with suppliers, claims which the group denies.

The E&L Advertiser has contacted a number of employees for their comments

“It’s bad news but there’s nothing we can do. It’s just the current situation.”

Another said: “My thoughts are that it was to be expected. I’m sure the Phoenix will rise from the ashes as has happened before.

“The despicable part of the entire situation is that there has been absolutely no duty of care to the employees, no communication since lockdown began, apart from an email saying the wage payment date was changing.

“No asking how everyone was coping etc. Disgraceful.”

A statement by the Langholm Alliance said: “The wider view of the alliance is that, given Langholm’s status as the traditional home of EWM and the number of local people, whose livelihoods remain dependent on the company, we await the outcome of the forthcoming review and sincerely hope the administrators and management find a swift solution which safeguards jobs.” 

EWM operates an outlet and café in Jedburgh and Borders MP, John Lamont, said: “This is very concerning news and not only for Jedburgh.

“EWM is a big employer in the UK and owns several other retail brands such as Ponden Home and Jaeger.

“I understand the company has contacted its staff this morning, which I welcome. It is important that staff are always made aware of any information first.

“There have been a number of very difficult news stories about jobs in the Borders this year and it is disappointing to see another potential loss.

“I sincerely hope administrators are not needed but, if they are, I’ll make sure I contact them to ensure employees are receiving the support they need.”

 
 
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

Castleholm is officially in community hands

Landmark deal sees cherished land transferred to the people of…

 

Hope Hospital shines in Excellence in Care inspection

The Thomas Hope hospital in Langholm recently had a six-month…

 

Emergency services rescue woman from chilly River Esk

Firefighters from Langholm, Annan, Dumfries and Gala required as water…

 

Disappointment with LINK’S response to cash worries

Cash machine company not a lot of help in finding…

 

Holiday village plans for Irvine House and grounds

Buccleuch’s vision for up to 150 lodges couldbenefit Langholm businesses…

 

Town loses out on funding due to mis-reported population

Discrepancy between census statistics andBorderlands figures has cost Langholm dear…

 

Banking possibilities under investigation

After announced closure of Bank of Scotland,solutions including a Post…

 

All kinds of everything at the 172nd Langholm Show

MAIRI TELFORD JAMMEH reports on Langholm’s Rural Highlight in an 8-Page Supplement…

 

15 nights road closure for A7 improvements

Overnight works to resurface road south of Canonbie will run…

 

Signage, speed limit, flooding and potholes

An update from the A7 Action Group’s meeting The A7…

 

Bank of Scotland to close Langholm branch

As High Street loses its last remaining bank,residents are saying…

 

Inaction by BT leaves Hub incommunicado

Eskdalemuir venue unable to function properly without phoneline or broadband…

 

Nearly 1,000 objections to Warblaw Woodlands

Langholm locals object to commercial forestry on their doorstep An…

 

Depression on David Street to be tackled

and other updates from Councillor Male After many months of…

 

Warblaw worries are endorsed by politicians

MSP Oliver Mundell urges residents to join Warblaw fight ahead…

 

Golden time in Paris for Copshaw’s Paralympian

Team GB Paralympic swimmer Stephen Clegg ALSO breaks long-standing record…what…

 

Teachers face up to the Great North Run

In March this year, Headteacher of the Langholm and Canonbie…

 

Residents encouraged to react to Warblaw plans

If you are against the blanket of trees proposedfor our…

 

Consultation on change of school week structure

Views, opinions and concerns sought from parents/carers Dumfries and Galloway…

 

Letters to the Editor

More Warblaw worries With reference to Mark Hallam’s letter of…

 

Show Season starts with Canonbie's fine flower-power

Mairi Telford Jammeh reports from Canonbie Flower Show and vintage…

 

Much opposition to plan for Warblaw woodlands

Action Group formed to challenge forestry company’s ‘blanket of trees’…

 

Langholm Common Riding 2024

 

Common Riding Gallery 2024

Lots more photos in this week’s E&L. Many thanks to…

 

Over 100 years of Thomas Hope service between them

Angela, Kate and Sheena have all worked in a job…

 

Three of the best

Everyone at the E&L and Muckle Toon Media wish Bailey…

 

Have your say on the future of Langholm Housing

New survey aims to gather opinion on what the town…

 

Castle Craigs Rideout in photos

 

Holes filled, wall secured

At least the Common Riding route is more or less…

 

Future-proofing the Common Riding

No less than 63 ponies and their riders sallied forth…

 

Langholm Common Riding 2024

And so it begins… It was a wee bit on…

 

The Langholm Alliance: facing challenges head-on

‘Despite funding limitations, we are dedicated to transforming Langholm into…

 

Wildfires cause Greek Island holiday scare

A Langholm couple on holiday, in Kardamena on the idyllic…

 

Mighty Hikers Mel and Karl raise over £4k for Cancer Care

Local couple walk in Wales to support charity dear to…

 

Pureous Bunkumos

Saturday dawned bright and beautiful for the Copshaw Common Riding,…

 

Envisioning D&G's future landscape

Ideas for the future landscape of Dumfries and Galloway were…

 

20 WILL BE plenty!

 Blanket 20mph limit for all Langholm streets plus more…

 

Team work helps secure Langholm Day Centre

Manager Sandra Graham pulls out all the stops to negotiate…

 

DGRI cyber attack leads to region-wide mailing

CEO will contact every household in region with online safety…

 

EDF presents revised plans for windfarm near Copshaw

Revised plans for a major new windfarm to be sited…

 
 
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 website uses cookies
This site uses cookies to enhance your browsing experience. We use necessary cookies to make sure that our website works. We’d also like to set analytics cookies that help us make improvements by measuring how you use the site. By clicking “Allow All”, you agree to the storing of cookies on your device to enhance site navigation, analyse site usage, and assist in our marketing efforts.
These cookies are required for basic functionalities such as accessing secure areas of the website, remembering previous actions and facilitating the proper display of the website. Necessary cookies are often exempt from requiring user consent as they do not collect personal data and are crucial for the website to perform its core functions.
A “preferences” cookie is used to remember user preferences and settings on a website. These cookies enhance the user experience by allowing the website to remember choices such as language preferences, font size, layout customization, and other similar settings. Preference cookies are not strictly necessary for the basic functioning of the website but contribute to a more personalised and convenient browsing experience for users.
A “statistics” cookie typically refers to cookies that are used to collect anonymous data about how visitors interact with a website. These cookies help website owners understand how users navigate their site, which pages are most frequently visited, how long users spend on each page, and similar metrics. The data collected by statistics cookies is aggregated and anonymized, meaning it does not contain personally identifiable information (PII).
Marketing cookies are used to track user behaviour across websites, allowing advertisers to deliver targeted advertisements based on the user’s interests and preferences. These cookies collect data such as browsing history and interactions with ads to create user profiles. While essential for effective online advertising, obtaining user consent is crucial to comply with privacy regulations.