Oasis and Warehouse ‘on the verge’ of administration putting 2,300 jobs at risk
HIGH street fashion giants Oasis and Warehouse could be set to plunge into administration in less than 24 hours, putting more than 2,000 jobs at risk.
Sun sources say the fashion chains are close to appointing accountancy firm Deloitte to handle an insolvency process.
An announcement is expected later today, April 14, or tomorrow.
It comes three weeks after the Oasis and Warehouse Group were reported to be exploring options with potential buyers.
The Oasis and Warehouse Group employs 2,300 people and is owned by Icelandic lender Kaupthing.
In total, the company has 90 standalone stores in the UK, with an additional 437 shops trading in department stores.
High street closures in 2019 and 2020
OASIS and Warehouse are the latest in a long list of stores to be facing trouble on the high street.
In 2019 and so far in 2020 we've seen:
- Forever21 close 350 stores with its UK branches also at risk
- Jamie Oliver's "Jamie's Italian" chain go bust, alongside his Fifteen and Barbecoa restaurants
- Links of London go into administration putting 350 jobs at risk
- Marks and Spencer close 35 more stores as it pushes forward with plans to axe 145 shops across the UK
- Dozens of Monsoon and Accessorize stores close
- While struggling shoe shop Office has said it "could close shops" as part of restructuring plans
- Fears Pizza Express could be next to go into administration as it "brings in emergency advisers"
- Hairdressing chain Supercuts went into administration in October putting 1,200 jobs and 220 salons at risk
- Maternity and baby retailer Mothercare collapsed into administration in November after 58 years on the high street, putting 2,500 jobs at risk
- Department store chain Beales went into administration in January 2020 with 23 shops and 1,052 jobs at risk
- High end fashion brand Ted Baker said it plans to axe 160 jobs in February
- Brighthouse and Carluccio’s went into administration at the end of March
- Mobile phone retailer Carphone Warehouse said in March that it'll close all 531 standalone stores in April
- Debenhams entered administration for the second time in 12 months in April, with 39 stores to close
According to , the majority of staff who keep their jobs would be furloughed under the Coronavirus Job Retention Scheme.
This is where employers can ask the government to pay 80 per cent of the wages of staff who are temporarily unable to work.
Should an administration announcement follow, it might not necessarily be the end of Oasis and Warehouse.
Talks are expected to continue with potential buyers.
What is administration?
ADMINISTRATION is when all control of a company is passed to an appointed administrator.
The administrator has to be a licensed insolvency practitioner.
Their goal is to leverage the company's assets and business to repay creditors, so it doesn't necessarily mean the end of a business.
Administration is slightly different to liquidation.
Where administration aims to help the company repay its debts, liquidation is the process of selling all assets and then dissolving the company completely.
Oasis and Warehouse stores are currently closed across the UK in line with government guidelines following the coronavirus outbreak.
However, both stores are still selling online.
We've asked Kaupthing for more information and we'll update this story when we know more.
Oasis and Warehouse wouldn't be the first brands that struggling lender Kaupthing has sold off in recent years.
Last year, it sold Karen Millen and Coast to Boohoo.
Deloitte was unable to comment.
The potential administration of Oasis and Warehouse follows the collapse of Debenhams last week.
The department store chain officially entered administration for the second time in 12 months, appointing business advisory firm FRP Advisory to deal with the process.
In more trouble for the high street, Cath Kidston filed a notice of intention to appoint administrators last week.
And last month, Laura Ashley was forced to shut down 70 stores.
In November, Mothercare collapsed into administration after 58 years on the high street.