// Edinburgh Woollen Mill administrators are believed to have sent sales contracts to potential buyer
// Hundreds of jobs at EWM could be saved if sales process goes ahead
// Retail group is thought to owe creditors over £190m
There could be hope to save hundreds of high street jobs after Edinburgh Woollen Mill’s administrators FRP Advisory issued sales contracts to a potential buyer, according to The Sunday Times.
Philip Day’s retail empire has reportedly accepted a rescue deal, although a source cited by The Sunday Times said the deal was likely to save only a small number of EWM’s 400 stores.
At the time of administration, the group permanently closed 56 Edinburgh Woollen Mill stores along with eight Ponden Home shops, axing 866 jobs and putting a further 1821 jobs under threat.
- M&S to buy Jaeger from Edinburgh Woollen Mill Group this week
- Philip Day’s Edinburgh Woollen Mill owes creditors over £190m
- Frasers Group warns Edinburgh Woollen Mill administrators against “unfair” deal
Edinburgh Woollen Mill previously held Peacocks, Jaeger, Austin Reed and Bonmarché in its stable of high street brands before the impact of coronavirus resulted in national and localised lockdowns.
“Regrettably, the impact of Covid-19 on the brands’ core customer base and tighter restrictions on trading mean that the current structure of the businesses is unsustainable and has resulted in redundancies,” FRP administrators stated in November, when EWM fell into administration.
With the retail group now being broken up, it’s thought Marks & Spencer could be on the verge of purchases Jaeger, with EWM this week saying a transition was “imminent”.
EWM is believed to owe creditors, including suppliers and landlords, around £192 million, according to a report from administrator FRP Advisory.