Up to 4,800 jobs have been put at risk as the fashion retailers Peacocks, Austin Reed, Jaeger and Jacques Vert have fallen into administration.
These retail brands are all part of the Edinburgh Woollen Mill Group, which sent out its own warnings that difficult times were on the way recently.
These budget fashion chains together currently employ 4,369 people across over 400 UK shops. These jobs are now obviously at risk and will potentially be largely lost in the near future.
Although, no official statement has been made confirming redundancies and job losses as of yet, but this is likely to change over the coming days and weeks.
Peacocks and Jaeger call in the administrators
The overarching brand was officially placed into administration before a legal deadline was reached last Friday. This came after a failed business rescue attempt was attempted. However, you should note that the businesses within this fast fashion brand will be able to continue to trade for the time being, despite being classed as insolvent, due to the rulings of administrators who understand they’re still searching for other options.
The trouble for fashion retailers
Fashion retailers have certainly had a rough year due to the ongoing effects of the Coronavirus pandemic, though they have been faced with difficulties for a few years now. In recent years huge retail businesses such as Debenhams, John Lewis and House of Fraser have each been faced with store closures and financial threats of their own.
Of course this year has brought an unprecedented amount of difficulties onto the doorsteps of physical retailers like Edinburgh Woollen Mill Group, who were already being outdone by their online competitors in the modern digital age.
The evolution of the internet has made it easier and more convenient for shoppers to browse and purchase goods than ever before. Whether that’s from a laptop, tablet or mobile phone – people can purchase almost anything from anywhere with just the click of a few buttons.
Whether you think it’s a good or bad thing, we’re seeing more brands such as Missguided close their physical stores, instead focusing their efforts into the online portion of their respective businesses and making that the main outlet of their sales. If it’s easier to generate profit online and connect with the customer, you’re going to see more and more businesses head down this modern road.
Social distancing and all of the rules and regulations surrounding it have certainly helped to take care of a good chunk of retail sales transferring to online sales.
Speaking of the social distancing rules being tightened recently, people are now once again not allowed to meet up with six or more individuals at a time. This will cast the worries of COVID-19 back into the minds of the public yet again and will likely scare crowds away from visiting physical stores when they have an easy-to-access alternative online.
Coronavirus has without a doubt impacted all aspects of our lives, and we’ve all had to think differently about the way we shop. You can pretty much guarantee that the trend for online shopping will continue to rise in a post-COVID world. We’re all becoming even more used to buying products online, due to the impacts of the terrible virus, and therefore it’s hard to see a point where we revert back to high street spending sprees.
Work goes on after fashion retail job losses
If you’re about to lose your job because of the closures that are currently taking place, be ensured that this isn’t the end of your employment journey, rather a mere bump in the road. Keep your CV up to date. The experience gained from the position you’re facing redundancy from will likely be key in gaining your next role at a new company.
Glassdoor advises, “Remember that a quality CV is succinct and tailored to the precise role. Be selective about which details to include and then ask yourself: Does this highlight the best of my work and what I have to offer?”
Target recruitment consultancies when looking to reboot your work life. These consultants will be tasked with headhunting new workers and finding ideal candidates to fill a void in workplaces. Try to obtain the email addresses of people such as these and give yourself the insider knowledge that may lend you the upper-hand when talking to recruiters.
You could start your own business venture
The loss of a job, be it through redundancy or otherwise, can often make for a good time to being your own journey into the business world. Choosing to start your own company can be a daunting but exciting time. If you have a passion that you’d like to turn into a career, beginning a new business will come with plenty of perks.
You can be your own boss. You’ll make your own working hours and choose exactly when you need to work hard, or take it a little easier from time-to-time. If your business grows, you’ll be able to find your own employees. You’ll experience being on the other side of the job search fence, discovering the right candidates for your company.
If this sounds like the next move you want to take, you may require a cash advance, or a small business loan, maybe a good starting point.
Worried about your business and administration?
You’ve very likely heard of companies ‘going into administration’. If the company is insolvent and facing serious threats from creditors, a licensed insolvency practitioner can be appointed by the court as an administrator. This protects the company from creditor claims and legal action, allowing the business to be restructured or prepared for sale.
While a trading administration protects the business, it can be expensive and also creates uncertainty and delay. Continuity is really important.
For most businesses, a pre-pack administration is a better option.
A pre-pack provides more certainty, continuity and control. Trading in administration can seriously damage the value of the business, but a pre-pack preserves this value by allowing the assets to be sold as a pre-agreed deal to new or even the original owners, shareholders or directors. Effectively, the business can continue in a new form, with a much greater chance of success.