Edinburgh Wooden Mill on brink of administration

The retailer, which also owns Jaeger, Austin Reed and Peacocks, has filed a notice of intent to appoint administrators, the Guardian said. The filing gives the company 10 days of protection from creditors.

Edinburgh Woollen Mill has been looking or a buyer and said it had received expressions of interest for parts of the group which it was assessing with other options. Chief Executive Steve Simpson said there would "inevitably be significant cuts and closures".

The company said it was struggling to get credit insurance because of rumours about its financial position and that the second wave of Covid-19 had disrupted trading.

Simpson said: Simpson said: “Like every retailer, we have found the past seven months extremely difficult. This situation has grown worse in recent weeks as we have had to deal with a series of false rumours about our payments and trading which have impacted our credit insurance."

Edinburgh Woollen Mill is the latest retailer to say its future is under threat because of Covid-19 and its impact on the economy. A second wave of infections has caused visits to shops to fall and threatens to prompt a new round of lockdowns by the government.

After announcing the end of his national furlough programme at the end of October, Chancellor Rishi Sunak is introducing measures to support businesses and jobs in places subject to local lockdowns. Economists have warned of a surge in business failures and job losses unless Sunak provides more support over the winter.