2,700 jobs at risk as Laura Ashley files for administration amid coronavirus outbreak

Up to 2,700 jobs are at risk after retailer Laura Ashley, set up by a Welsh fashion designer, has filed for administration.

The troubled fashion chain said rescue talks were halted by the coronavirus outbreak.

The retailer operates 150 stores in the UK.

Laura Ashley said it had seen an upturn in sales in recent weeks, with trading up 24% year-on-year for the seven weeks to March 13.

However, it said the virus outbreak has "had an immediate and significant impact on trading, and ongoing developments indicate that this will be a sustained national situation".

The troubled retailer had been in talks with stakeholders over refinancing, but it said its "revised cash flow forecasts and increased uncertainty" mean it will not be able to secure these funds in sufficient time.

Laura Ashley was born in Dowlais, Merthyr Tydfil in 1925. She and her husband, Bernard Ashley, started the business when living in London.

In 1960 they moved to Wales and opened their first store in Machynlleth, Powys, which they lived above.

The company's announcement comes as Downing Street is due to announce new measures to help the economy during the coronavirus pandemic.

Businesses have been warning measures to prevent the virus spreading could lead to their closure.

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