(Alliance News) - Struggling UK retailer Laura Ashley Holdings PLC on Tuesday said it has appointed administrators as it has failed to "draw down additional funds".
The company said shareholder MUI Asia Ltd was unable "to provide financial support in the required timeframe".
Laura Ashley said: "Discussions with stakeholders have been ongoing and the directors are in advanced discussions for the provision of third-party debt funding. However, based on the company's revised cashflow forecasts and the increased uncertainty facing the group, the company expects that it will not be in a position to draw down additional funds from third party lenders."
The company said that in the seven weeks ended March 13, its trading improved by 24% year-on-year, though the Covid-19 outbreak had an "immediate and significant" impact on its performance.
"Accordingly, the company regrets to announce that the directors of the company, and of the named subsidiaries, have today filed notices of intention to appoint Robert Lewis and Zelf Hussain as administrators. If administrators are appointed in respect of the company, given the group's creditor position, the company is not certain whether there would be any surplus assets available to shareholders of the company," Laura Ashley added.
It has requested for its shares to be suspended from trading in London. They were down 90% to 0.10p before the suspension took place. Five years ago, the stock was priced above 30p.
By Eric Cunha; ericcunha@alliancenews.com
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