Laura Ashley (ALY) will file for administration and has requested the suspension of its shares. The stricken retailer has admitted that updated cash flow forecasts in light of the coronavirus outbreak will leave it unable to secure the funding it requires to maintain its working capital requirements.
Last month, Laura Ashley admitted that there had been a reduction in available funding from lender Wells Fargo. Having secured £5m under this facility, the company entered discussions to borrow up to £15m from a third party lender. Laura Ashley warned that this funding would need to be in place by the close of March.
A subsequent update noted a 24 per cent year-on-year lift to trading. But coronavirus “has had an immediate and significant impact on trading”, and Laura Ashley admitted that revised cash flow forecasts and rising uncertainty meant it would be not possible to draw down the funding it needs to survive. The company confirmed that investment firm Mui Asia Limited, which controls Laura Ashley, said that it would not be able to offer financial support in the necessary timeframe.
