Edinburgh Woollen Mill collapse puts jobs at risk

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Edinburgh Woollen Mill and Ponden Home have been placed into administration, putting thousands of jobs at risk.

The clothing retailer had 328 sites and 2,571 staff across the UK, while homeware store Ponden had 329 staff.

Today 866 jobs were lost across the two chains adding to the hundreds that went after 64 stores across the two brands were permanently closed.

EWM Group owns both chains but is still trying to strike a rescue deal to save remaining brands, Peacocks and Jaeger.

A spokesperson for EWM Group said: "Over the past month we explored all possible options to save Edinburgh Woollen Mill and Ponden Home from going into administration, but unfortunately the ongoing trading conditions caused by the pandemic and lockdowns proved too much.

"It is with a heavy heart we acknowledge there is no alternative but to place the businesses into administration."

Tony Wright, the joint administrator from business advisory firm FRP, said both Edinburgh Woollen Mill and Ponden were trading well before the coronavirus pandemic and FRP would continue to search for buyers for the businesses so they do not disappear completely.

He added: "Regrettably, the impact of Covid-19 on the brands' core customer base and tighter restrictions on trading mean that the current structure of the businesses is unsustainable and has resulted in redundancies.

"We are working with all affected members of staff to provide the appropriate support."