Ailing retailer Laura Ashley seeks further £15m rescue loan just weeks after emergency funding deal
- It was saved from collapse last month by £20m lifeline from US bank Wells Fargo
- It said it is ‘in advanced discussions with a third-party lender’
- But there are fears of the impact of coronavirus
Laura Ashley is scrambling to secure a rescue loan of up to £15million before it runs out of cash.
The struggling retailer, which was once a favourite of Princess Diana, is hoping to seal a deal this month.
The latest cash call comes just weeks after it agreed an emergency funding deal with US bank Wells Fargo, which was thought to be worth up to £20million.
Struggling: Laura Ashley is scrambling to secure a rescue loan of up to £15million
Laura Ashley said it had ‘continued to review its funding requirements’ and is ‘in advanced discussions with a third-party lender’. But there are fears of the impact of coronavirus.
Laura Ashley has not revealed who it is in talks with for the loan – but retail advisory group Gordon Brothers and Homebase-owner Hilco have both been connected to the discussions.
The company, which was founded in 1953, has 2,700 staff and 150 stores.
Sales have fallen and halfyear losses widened to £4million from £1.5million.