Early last week, Philip Day-owned Edinburgh Woollen Mill Group (EWM) had warned that around 24,000 jobs could be hit if it collapses into administration.
Now more than a week later, the British Property Federation, known better as BPF, has come down strongly on the retail group and slammed its administration proposals.
BPF has expressed displeasure over the practices employed by the business owners in the UK to manipulate and abuse insolvency rules.
Philip Day has been strongly seeking to push through pre-pack administration that will help him retain ownership of the EWM Group, which also owns Peacocks and Jaeger.
EWM, in a letter, has said that its administrators are reviewing its lease portfolio so as to determine which stores – if any – will be retained and/or transferred.
Here it is important to mention that earlier this month, EWM had announced to hire administrators FRP advisory to help the Group restructure.
The letter also read that as per a rationalisation plan, more than 50 EWM stores will be closed in next few days.
More on this, Melanie Leech, Chief Executive, BPF, said that anyone who reads the letter will be outraged.
Ratcliffes Chartered Surveyors, which manages 4 retail properties leased to EWM Group, in a response to the letter said that it is the intent of the EWM directors to place this previously very profitable firm into administration.
EWM had reported pre-tax profits of £14.7 million for the half year to March 2020.