Menu
 
Home | News | EWM is sold but not all jobs will be saved
 
News | 14th January 2021
 

EWM is sold but not all jobs will be saved

 
 
The former EWM headquarters at Waverley Mills, Langholm
 

CRITICISM has been levelled at the way Tuesday’s sale of high street retailer Edinburgh Woollen Mill has been processed.

The deal was hailed as having saved hundreds of jobs at EWM and Ponden Home, which have been in administration since November 5.

They were formerly owned by billionaire Philip Day, the sole owner of Edinburgh Woollen Mill Group.

The joint administrators announced that the businesses were sold to Purepay Retail Limited, which was backed by an international investor consortium.

Tony Wright and Alastair Massey, partners at specialist business advisory firm FRP, have marketed the two businesses for sale.

Purepay, a secured creditor to the businesses, has acquired all the remaining stock, along with the head office site and distribution centre in Carlisle.

The administrator said Purepay would operate 246 stores under licence from both brands.

The corresponding 1,347 store staff will transfer to the acquirer, alongside all 72 head office and 34 distribution staff.

The remaining 85 EWM stores and 34 Ponden Home stores have been permanently closed.

The roles from these stores, including 358 EWM staff and 127 Ponden Home staff, have been made redundant.

Mr Wright said: “We have extensively marketed these businesses and this transaction gives the best chance to save stores and jobs and meets our own statutory obligations to creditors.

“With such little visibility on future trading conditions in UK retail, we regret that not all EWM and Ponden Home could be rescued.

“This has resulted in a significant number of redundancies at a particularly challenging time of year and period of economic uncertainty.

“We have a team working hard to support all those affected as we help make applications for redundancy payments.”

Jaeger Retail Limited and Peacocks Stores Limited remain in administration.

David Stevenson, founder of EWM and chairman of Ashleybank Investments, represents one of the creditors of the EWM administration.

He said: “Steve Simpson, Philip Day’s right-hand man and now the ‘new owner of EWM’ was in touch with us yesterday to tell us how delighted he was to have secured a future for the business and, working with Philip Day, he had agreed terms for the purchase.

“He didn’t say what they were.

“I was then surprised to be told that he had committed to acquire only the online part of the business and not taken responsibility for the stores.

“One hundred and fifty stores have already been closed and this process of closing stores will continue during the current lockdown so exactly what the final outcome will be is very muddy indeed.

“It’s certainly a very different picture to the one painted in the press releases.

“I’m afraid I’m more than cynical about the way this process has been engineered and the outcome looks very similar to the one I forecast when administrators were appointed.

“The unsecured creditors, of which there are hundreds, have been hung out to dry and will receive tuppence in the pound, while the shareholders will come out a lot, lot better.

“To cap it all, the new owner asks us “to support him going forward to create a more positive future of both of us”.  He must be joking!”

The EWM Group is selling Jaeger to Marks & Spencer.

Richard Price, managing director of M&S Clothing & Home, said: “We have set out our plans to sell complementary third-party brands as part of our Never the Same Again programme to accelerate our transformation and turbocharge online growth.

“In line with this, we have bought the Jaeger brand and are in the final stages of agreeing the purchase of product and supporting marketing assets from the administrators of Jaeger Retail Limited.

“We expect to fully complete later this month.”

Dumfriesshire MP David Mundell and MSP Oliver Mundell have cautiously welcomed the deal which may secure some EWM jobs and branches.

They said: “This appears to be a complex agreement which we firmly hope will bring some certainty for those employed by EWM on both sides of the border.

“We will seek clarification about the future of EWM’s remaining retail sites in Dumfriesshire and historical assets such as the long-boarded-up former Moffat Mercury Inn.”

 
 
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

A danner for Doddie

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

 

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

 

Non-essential trips to England are banned

First Minister announces tougher restrictions to beat the virus

 

Riverbank erosion puts A7 in danger

Residents voice their fears as three metres of banking disappear

 

Tune into Open Country broadcast

TWO historic community land buyouts have been agreed in Eskdale…

 

Cannabis oil producer given substantial grant

Langholm business to create more than 50 jobs in the…

 

EWM collapses with 750 jobs lost

About 40 staff are made redundant as administrators take over

 

Village could be the gateway to new park

Newcastleton would sit in a unique position as an attraction

 

40 jobs lost in Langholm as EWM collapses

SEVEN hundred and fifty jobs at Edinburgh Woollen Mill have…

 

EWM PLACED INTO ADMINISTRATION

Edinburgh Woollen Mill and Ponden Home have been placed into…

 

Roadmap to success is in everyone’s hands

Langholm Alliance manager says he is here to get things…

 

Historic deal to buy moor agreed

Duke will sell 5,200 acres to community for a nature…

 

Community buys Langholm Moor

SOUTHERN Scotland’s largest community buyout is set to go ahead…

 

Day earns extension to save retail empire

High Court grants EWM Group two more weeks to save…

 

Flu vaccine campaign for over 65s is on target

Eligible patients will receive a letter soon for an appointment

 

Great new plans for old favourite

Owners have fresh outlook for Langholm’s Crown Hotel

 

Pick up a pumpkin

THERE’LL be fewer ghostly goings-on this Halloween but don’t despair.…

 

Time is running out to buy town’s moorland

It’s a race to the finish as deadline of October…

 

Day of reckoning

EWM chain’s future is in doubt if group’s owner saves…

 

Flood Scheme Forum

RESIDENTS living in riverside properties in Langholm have voiced their…

 
 
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.