Newtown Laura Ashley factory to close, with 57 jobs lost

Hopes of a buyout at the Newtown site have been dashed

A Laura Ashley factory in Powys is to close next month, with the loss of 57 jobs.

Staff at the Texplan warehouse and call centre in Newtown have been told hopes of a management buyout have been dashed.

The furniture and fashion chain collapsed into administration in March.

"It's really sad and so hard for the workforce and families, it will have a huge impact on the area," Newtown councillor Joy Jones said.

Chief executive Katherine Poulter said "time and events have conspired" against plans to find a buyer for the stock and freehold to the sites.

"Everyone in our Laura Ashley family has pulled together and delivered everything possible to give our business operations the best chance of continuing as a going concern," she told the Local Democracy Reporting Service.

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"It is now increasingly unlikely that we will be able to secure a going concern for retail and manufacturing operations."

In April, 25 machinists returned to work to make up to 3,000 sets of scrubs a week for the NHS as part of the efforts to deal with coronavirus.

Almost half of Laura Ashley's 147 UK stores have permanently closed

Administrator PricewaterhouseCoopers (PwC) described the news as "extremely disappointing" and said it would provide all affected staff with support.

"It is with real regret that we have to announce redundancies at what is already a challenging time for individuals dealing with Covid-19 disruption," said PwC partner Rob Lewis.

Some of the firm's 147 stores have re-opened, having closed due to coronavirus, though 70 have closed permanently.

From humble beginnings at the Old Railway House in the village of Carno, near Newtown, in the 1960s, the Laura Ashley company grew to have 5,000 retail outlets worldwide and has been based in Newtown since 1984.