Coronavirus: Eastbourne Laura Ashley at risk as company goes into administration amid pandemic

It is thought coronavirus has had a role in the store’s misfortunes, with potential customers cutting down on non-essential shopping.

Around 2,700 jobs are understood to be at risk. following the news announced today (March 17).

The company has said the virus outbreak has has an ‘immediate and significant’ impact on trading.

Laura Ashley said in a statement business had improved in the seven weeks leading up to March 13, but had since plummeted.

It said, “The COVID-19 outbreak has had an immediate and significant impact on trading, and ongoing developments indicate that this will be a sustained national situation.”

Robert Lewis and Zelf Hussain have been appointed as administrators.

Which? consumer rights expert Adam French called the news a ‘serious blow for the high street’.

He said, “Laura Ashley going into administration amid the coronavirus crisis is another serious blow for the high street.”

“For the time being stores will remain open and your consumer rights should be unaffected, but we would advise anyone with a Laura Ashley gift card to consider spending it online as soon as possible.

“If there is something you are planning to buy from Laura Ashley that is worth more than £100, make sure you use a credit card as you’ll be able to make a claim against your credit card company to recover the money if anything goes wrong.”

One finance expert has said COVID-19 ‘thwarted’ rescue talks.

Salman Haqqi, personal finance expert at money.co.uk, said, “It’s sad but not surprising news, as we know they are one of the many household high street brands that have struggled to make ends meet in the current retail climate.

“Clearly COVID-19 has had a role to play here too, with potential customers worried about going out and doing non-essential shopping.

“The fashion and homeware chain has even said it has filed for administration after rescue talks were thwarted by the coronavirus pandemic.”

Mr Haqqi continued, “It’s undoubtedly distressing news for employees of Laura Ashley and their families especially in such worrying times. Now is the time to check what redundancy rights you have and dig out any income or mortgage protection policies you hold, just in case.

“It’s currently unknown whether or not Laura Ashley will honour gift vouchers and refunds now administrators have been called in. It isn’t illegal for them to refuse refunds so if you were hoping to return any goods you may be in for a lengthy battle to get your money back.”

Employees worried about their redundancy rights can visit money.co.uk for more information