Menu
 
Home | News | Pandemic infects iconic retail brand
 
News | 15th October 2020
 

Pandemic infects iconic retail brand

More unemployment as Day puts EWM Group in administration

 
 
 

THE Edinburgh Woollen Mill Group intends to close up to 200 EWM stores this month, it has been revealed.

Correspondence was received by the E&L Advertiser over the company’s intentions after the EWM Group filed a notice to appoint administrators, with 24,000 jobs at risk, last Friday.

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.”

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.”

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

The high street fashion chain was founded in Langholm but moved its headquarters from Langholm to Castle Street in Carlisle two years ago.

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

A statement 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.

“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.

“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.”

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.” 

David Mundell, Dumfriesshire, Clydesdale and Tweeddale MP, said he was deeply disappointed and his thoughts were with staff and their families.

He said: “Although the company controversially moved its head office from Langholm to Carlisle, a significant number of my constituents remain employed by EWM.

“It’s important all appropriate agencies, including South of Scotland Enterprise, work together to support those affected and every effort is made to save as many jobs as possible.”

Oliver Mundell, Dumfriesshire MSP, expressed sadness that such a well-known company, with roots in Langholm and sites at Moffat, Gretna Gateway and Carlisle, faced such a crisis.

He said:  “EWM has been a familiar brand for a long time and I hope some kind of rescue can be achieved in the days and weeks ahead.

“I stand ready to help constituents affected by this unwelcome news and will keep in touch with the relevant agencies.”

 
 
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.