The Trader 

Retail blow: Laura Ashley the first domino to tumble

Retail blow: Laura Ashley the first domino to tumble

12:00 Laura Ashley heads into administration

Laura Ashley (ALY) has collapsed, with the company laying the blame squarely on the immediate impact of the coronavirus outbreak. Shares are suspended and it looks to be the first domino to go. It's a classic case of being able to service high debt loads when cash flow remains steady but as soon as the revenues dry up, the debt crushes you whatever interest rate you may be able to get. It highlights the very real limitation in monetary policy right now - debt is about cashflow, not interest rates, for businesses.

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