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Laura Ashley collapses as firms demand more help | |
(32 minutes later) | |
Fashion and furniture chain Laura Ashley has become the latest casualty of the coronavirus pandemic. | |
Just two weeks after regional airline Flybe collapsed, the retailer has said it will have to call in administrators putting 2,700 jobs at risk. | |
It is one of the many firms reeling from the impact of the coronavirus, with the government advising people to avoid unnecessary contact with others. | |
The collapse comes as the chancellor prepares fresh support for companies. | |
Firms from many industries including airlines, retailers, restaurants, theatres and pubs have said the virus has pushed them to the brink, with several warning of imminent collapse without government help. | |
Chancellor Rishi Sunak has already announced a £12bn Budget package to help businesses deal with the crisis, including business rates relief and a new hardship fund, but said in his Budget speech he would "not hesitate to act" if more was needed. | |
He is expected to unveil new financial measures to help deal with the effects of the outbreak in the government's daily briefing on the outbreak on Tuesday afternoon. | |
Carolyn Fairbairn, head of the CBI business lobby group, called for co-ordinated and fast action to support businesses. "We do not want to look back and say we acted too late," she said. | |
Ahead of the announcement, Robert Chote, head of the Office for Budget Responsibility, told MPs that Britain was facing something akin to a wartime situation for its public finances. | |
He added that now was not the time for the government to be hold back on spending. | |
Sectors which have warned of problems include: | |
Most businesses do not have insurance cover to compensate them for coronavirus losses, a trade body and other experts have said. | |
Small businesses, in particular, are unlikely to have such a policy. | |
Laura Ashley said the outbreak "has had an immediate and significant impact on trading". It had been in talks with its lenders about accessing more funds to continue trading. | |
But based on cashflow forecasts and continued virus uncertainty, it said it would not get that money in time. | But based on cashflow forecasts and continued virus uncertainty, it said it would not get that money in time. |
The firm, which was also facing challenging High Street conditions, said: "The Covid-19 outbreak has had an immediate and significant impact on trading, and ongoing developments indicate that this will be a sustained national situation." | The firm, which was also facing challenging High Street conditions, said: "The Covid-19 outbreak has had an immediate and significant impact on trading, and ongoing developments indicate that this will be a sustained national situation." |