Fears are growing over the looming possibility of job losses in Stornoway’s retail industry

The Edinburgh Woollen Mill Group is at risk of collapsing placing 24,000 jobs at risk, not only in Stornoway but across the UK.

The company also has a large clothing concession for its Peacock chain within the Co-op store on Macaulay Road.

The company – which owns Peacocks, Jaeger, Edinburgh Woollen Mill itself, and several other high street chains – has lodged a notice of intention to appoint administrators to look for potential buyers to shore up its business.

Staff received warnings on Friday that jobs were at risk.

Angus MacNeil MP commented: “This is very concerning and an example that the UK Government who control the purse strings and print the money as currency issuer are not fully understanding or taking responsibility for the economic consequences of Covid. Some businesses have a future it is just that they don’t have a present, government is there to bridge them through this period.”

Alasdair Allan, MSP said: “The question mark about the future of the Edinburgh Woollen Mill is very concerning, not least because of the implications this would have for jobs in Stornoway. I have today contacted HIE to ask what can be done to support the workforce here at this difficult time and have written to ministers about this too.

“Clearly 2020 has been a difficult year for both the retail and tourism sectors, and it is important that everything is now done to support the jobs which EWM has on the island. This also points to why the UK Government needs to continue to support the furlough scheme rather than withdraw it at the very moment when employees and businesses need them most.”

The long-established business is a Carlisle-based retailer specialising primarily in clothing, along with interests in homewares and destination shopping for tourists. It is wholly owned by the Dubai-based British billionaire Philip Day.

Billionaire businessman Day is now working with insolvency specialists at FRP to spend 10 days carrying out an urgent review of his retail empire ahead of further action.

Stores will continue trading and further details will be announced in due course, EWM Group said.

“Like every retailer, we have found the past seven months extremely difficult,” EWM chief executive Steve Simpson said.

“This situation has grown worse in recent weeks as we have had to deal with a series of false rumours which have impacted our credit insurance.

“Traditionally, EWM has always traded with strong cash reserves and a conservative balance sheet but these stories and the reduction in credit insurance – against the backdrop of lockdowns, and the second wave reducing footfall have made normal trading impossible.

“As directors, we have a duty to the business, our staff, our customers and our creditors to find the very best solution in this brutal environment.

“We have applied to court today for a short breathing space to assess our options before moving to appoint administrators.

“Through this process I hope and believe we will be able to secure the best future for our businesses, but there will inevitably be significant cuts and closures as we work our way through this.

“I would like to thank all our staff for their amazing efforts during this time and also our customers who have remained so loyal and committed to our brands.”

An FRP spokesman said: “Our team is working with the directors of a number of the Edinburgh Woollen Mill Group subsidiaries to explore all options for the future of its retail brands Edinburgh Woollen Mill, Jaeger, Ponden Home, and Peacocks.”

Nobody was available at the local stores for comment.