Oasis and Warehouse on 'brink of collapse' putting 2,300 jobs at risk
14 April 2020, 14:04 | Updated: 14 April 2020, 15:37
Fashion brands Warehouse and Oasis are on the brink of collapse, putting 2,300 jobs at risk, it has been reported.
According to Sky News, the brands are expected to announce they are entering administration either today or tomorrow.
Sources have said the chains - which have 90 stores and 437 concessionary stores - are on the brink of appointing Deloitte, an accountancy firm, to handle their affairs.
Icelandic company Kaupthing, who own the brands, had tried to sell the two companies and were in discussions with buyers, but it understood the ongoing coronavirus pandemic stopped the sale from continuing.
If the brands do go into administration, then administrators are expected to furlough the majority of employees under the government's Coronavirus Jobs Retention Scheme.
The coronavirus pandemic is eating into British high street businesses, which were already feeling the pinch before the outbreak started.
Debenhams last week entered administration for the second time in a year in a bid to protect itself during the shutdown.
The company's 142 stores were already closed and most of the 22,000 members of staff on furlough before the owners pushed the business into administration.
The company said at the time: "This move will protect Debenhams from the threat of legal action that could have the effect of pushing the business into liquidation while its 142 UK stores remain closed in line with the Government's current advice regarding the Covid-19 pandemic."
The coronavirus crisis has also forced Flybe to close its doors, and Carluccio's and BrightHouse have also collapsed.
Other businesses are hoping to be able to re-open their doors when the lockdown is lifted.
Britons have been told to remain at home, and only to go out to buy essential food and medical supplies, or for one piece of daily exercise.
All non-essential stores have been forced to close, with the government promising to support businesses by picking up parts of their payroll, and backing loans.