Laura Ashley is set to appoint administrators after revealing trading has been hit by the coronavirus outbreak.
The retailer also said investors are unable to step in with the cash the business needs to stay afloat.
The company has filed a notice of intention to appoint Robert Lewis and Zelf Hussain as administrators today (March 17).
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In a statement, the retailer said: “The company regrets to announce that the directors of the company, and of the named subsidiaries, have today filed notices of intention to appoint Robert Lewis and Zelf Hussain as administrators.
"If administrators are appointed in respect of the company, given the group’s creditor position, the company is not certain whether there would be any surplus assets available to shareholders of the company.
“However, the Covid-19 outbreak has had an immediate and significant impact on trading, and ongoing developments indicate that this will be a sustained national situation,” the company said in the statement to investors.
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Despite the announcement, the business says it had been "doing well" during the seven weeks to March 13, with trading up 24 per cent on the same period a year earlier.
But main shareholder MUI Asia Limited will not be able to step in with the money which is needed in time, Laura Ashley said.
