2,300 jobs at risk as Oasis and Warehouse prepare for administration

Women’s fashion retailers Oasis and Warehouse are expected to appoint administrators as the high street continues to struggle in the wake of the coronavirus crisis. 2,300 jobs could be at risk.

Parent company Kaupthing, an Icelandic bank, had previously been in talks to sell the businesses but the current crisis has strained interest.

As first reported by Sky News, Deloitte is expected to be the appointed administrators and to furlough many of the 2,300 employees to keep their jobs under the government Coronavirus Job Retention Scheme.

Both chains were forced to shut their 90 UK stores because of the lockdown. The group also operates 437 concessions in department stores including Debenhams and Selfridges.

The corona-crisis has amplified existing pressures facing the high street

High Street retailers in the UK were already facing a tough trading environment before the crisis, reported the BBC, due to rising costs and changes in people’s shopping habits, but the lockdown and ensuing store closures has amplified the pressure for most.

Some retailers canceled orders from their suppliers, like Primark, whereas other said payment for stock would be delayed, as did New Look. Debenhams and Cath Kidston both filed for administration, with many wondering which retailer will collapse next.

Nigel Frith, senior market analyst at www.asktraders.com, said: “It only takes a bank holiday weekend following on from Debenhams to see the collapse of both Oasis and Warehouse. Both of these are long-standing high street members - but again, it’s no surprise that these are both struggling during the pandemic.

“It’s evident that COVID-19 hasn’t stopped for any retail name, with more obvious financial hits than others. It’s also surprising that these brand names haven’t fallen into any trouble sooner. The 2,300 employees employed by Kaupthing will be left feeling uncertain about a future within the company, especially as they will be worried about the financial impact on the pandemic anyway. Struggling online sales are likely to blame for this brand being in the red especially during the lockdown.”

“Looking forward, more high street brands will probably fail over the coming days, weeks and even months after COVID-19.”

Photo credit: Warehouse Fashion, Facebook