The Australian arm of homewares and clothing retailer Laura Ashley has entered voluntary administration with external directors called in to manage the business.
Known for its floral and pastel prints, Laura Ashley has operated in Australia and New Zealand under licence since 1971, and its UK-based parent company currently has about 300 franchised stores around the world.
The administration only applies to the retailer’s 38 Australian stores and will be managed by Ross Blakeley, Quentin Olde and John Park from FTI Consulting.
The stores will continue operating while FTI assesses Laura Ashley’s operations, Park said in a statement.
“It is the administrators’ intention to continue to trade business as usual while an urgent assessment of the company’s financial position is conducted.
“While no immediate significant changes to the company’s trading operations are anticipated, it will be necessary for the administrators to assess the performance and trading of individual stores.”
Although FTI Consulting says it is too early to tell what caused the collapse, Laura Ashley Australia’s administration comes just days after electronics retailer Dick Smith was placed in receivership.
The first creditors meeting will be held on or before 19 January.
By Ruth Cooper
