Edinburgh Woollen Mill rescue deal to result in 119 store closures
A rescue deal has been struck for troubled retailers Edinburgh Woollen Mill and Ponden Home, saving 246 stores but closing 119 locations.
As part of the sale, 85 Edinburgh Woollen Mill stores and 34 Ponden Home stores have permanently shut, resulting in 485 redundancies. The deal has protected 1,453 jobs.
The 246 stores have been saved by Purepay Retail, an existing subsidiary of EWM Group. This is backed by a consortium of overseas investors, who will put capital into the business.
A rescue deal has been struck for troubled retailers Edinburgh Woollen Mill and Ponden Home, saving 246 stores but closing 119 locations.
As part of the sale, 85 Edinburgh Woollen Mill stores and 34 Ponden Home stores have permanently shut, resulting in 485 redundancies. The deal has protected 1,453 jobs.
The 246 stores have been saved by Purepay Retail, an existing subsidiary of EWM Group. This is backed by a consortium of overseas investors, who will put capital into the business.
Former owner Philip Day will not retain control of the business, but will remain a creditor.
Purepay has acquired all the remaining stock, as well as the brands’ head office and distribution centre in Carlisle, Cumbria.
Tony Wright, joint administrator and partner at FRP, said: “We have extensively marketed these businesses for sale and this transaction provides the best chance to save stores and jobs, but also meet our own statutory obligations to creditors.
“However, with such little visibility on future trading conditions in UK retail, we regret that not all of Edinburgh Woollen Mill and Ponden Home could be rescued.
“This has resulted in a significant number of redundancies at a particularly challenging time of year and period of economic uncertainty. We have a team working hard to support all those affected as we help make applications for redundancy payments.”
Jaeger Retail and Peacocks Stores remain in administration.
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