Fashion retailers Oasis and Warehouse have collapsed into administration.
The collapse will put 2,000 workers at risk of losing their job across the chain's 92 branches and 437 concessions.
Why are the chains entering administration?
The news comes amid an uncertain time for many businesses across the UK, after being forced to close to customers due to the coronavirus outbreak.
Both Oasis and Warehouse are expected to appoint auditor Deloitte to handle the insolvency process.
The Oasis and Warehouse Group began discussions with prospective buyers three weeks ago, following an approach from an unnamed company. There is understood to have been strong interest in a deal, but the coronavirus pandemic is believed to have made a solvent sale impossible to conclude.
Talks are now expected to continue with potential bidders after the appointment of Deloitte is confirmed.
Currently, the companies traded from 92 standalone stores and 437 concessions in department stores, including Debenhams and Selfridges.
What will happen to employees?
A total of 2,000 jobs will now be in jeopardy as the stores enter administration.
It is expected that the administrators will put the majority of employees who keep their jobs on furlough, as part of the government’s emergency Coronavirus Job Retention Scheme.
Have any other stores entered administration during the pandemic?
On 9 April, Debenhams confirmed that it has formally entered administration for the second time this year, after being hard hit by the current coronavirus lockdown.
The department store has appointed administrators from the FRP Advisory to oversee the process, following a notice of intent to appoint administrators on 6 April.
Debenhams made the decision to enter administration in an effort to protect both the business and staff during the current lockdown, with the intent to resume trading once restrictions are lifted.
The retailers’ 142 locations across the UK remain closed, in line with government guidance, with the majority of its 22,000 staff currently on furlough.
Debenhams said it will work to reopen and trade in as many of its stores as possible.
However, its Irish business, which runs 11 stores with around 1,400 staff, will cease trading as part of the move.
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