Closing down sale signs up in Edinburgh Woollen Mill and Peacocks stores
PUBLISHED: 12:15 14 October 2020 | UPDATED: 13:21 14 October 2020
Closing down signs have been put up in Edinburgh Woollen Mill and Peacocks stores across Norfolk.
Over the weekend closing down sale signs appeared in the store front of the Edinburgh Woollen Mill in Norwich’s in London Street, and the Peacocks store in Dereham.
Both brands, as well as fashion retailer Jaeger, are owned by the Edinburgh Woollen Mill Group.
The move came after the group announced it was planning to appoint administrators – putting 21,000 jobs at risk.
However staff at the stores could not comment on when – or even if – the shops would close.
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“The harsh trading conditions caused by the impact of the Covid-19 pandemic and a recent reduction in its credit insurance” have been blamed as a cause for the company’s troubles.
In addition the company added that it has been hit hard by allegations, which it denies, that the retailer and several rivals failed to pay some Bangladeshi suppliers during lockdown in an attempt to cut costs for clothes they were unlikely to sell.
EWM chief executive Steve Simpson said: “Like every retailer, we have found the past seven months extremely difficult.
“This situation has grown worse in recent weeks as 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, the reduction in credit insurance, against the backdrop of the lockdown and now this second wave of Covid-19, and all the local lockdowns, have made normal trading impossible.
“As directors we have a duty to the business, our staff, our customers and our 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.”
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