Philip Day's Edinburgh Woollen Mill staves off collapse for another 10 days
Philip Day’s Edinburgh Woollen Mill has secured another grace period of 10 days before his retail empire falls into administration.
The company, which has amassed several fashion chains over the years including Jaeger, Peacocks and Austin Reed, went back to the High Court on Thursday to ask for further protection from creditors such as landlords or suppliers.
That request has now been granted, the company told staff in a memo on Friday.
But if Mr Day, who lives in Switzerland, fails to find a buyer for some of the brands or secure more cash in the coming days, it will be forced to formally appoint administrators at FRP, with more than 21,500 jobs at risk.
“We will use this time as best we can to protect the businesses and save jobs,” staff were told.
“[We] have made good progress, but it is a complex and difficult process. What is clear is that … it will mean a lot of change for all of us and inevitably a significant number of store closures.”
The firm, which was badly hit by the pandemic, has already shut 50 of its 1,100 stores, with another 100 sites earmarked for closure. About 600 Peacocks and Edinburgh Woollen Mill staff have already been made redundant.
The lockdown in Wales has forced the company's top team to try to reconfigure some parts of its supply chain this week after it disrupted the operations at two Peacocks depots, insiders said.
The tycoon, who is a secured creditor to Edinburgh Woollen Mill, is working to buy back some of the business, including Peacocks, with help from a US hedge fund. Talks have been disrupted by the Welsh lockdown, however.
Mr Day could sell Jaeger, seen as the most attractive of his fashion brands by suitors.
