Tynwald Mills parent company in trouble
Thousands of jobs under threat
The future of Tynwald Mills is under the spotlight after parent company, the Edinburgh Woollen Mill Group, filed a notice to appoint administrators today (Friday).
The company employs around 24,000 workers at its outlets throughout Britain. In a media statement, Steve Simpson, chief executive of the Group, said the business has found life very difficult over the past seven months of the Coronavirus pandemic.
He added:”This situation has grown worse in recent weeks as we have had to deal with a series of false rumours about our payments and trading which have impacted our credit insurance. Traditionally, the group has always traded with strong cash reserves and a conservative balance sheet but these stories, the reduction in credit insurance – against the backdrop of the lockdown – and now this second wave of Covid-19 and all the local lockdowns, have made normal trading impossible.
“As directors we have a duty to the business, our staff, our customers and our creditors to find the very best solution in this brutal environment. So, we have applied to court today for a short breathing space to assess our options before moving to appoint administrators.
“Through this process I hope and believe we will be able to secure the best future for our businesses, but there will inevitably be significant cuts and closures as we work our way through this.
“I would like to thank all our staff for their amazing efforts during this time and also our customers who have remained so loyal and committed to our brands.”
Edinburgh Woollen Mills bought Tynwald Mills is September last year. The group is owned by Dubai-based British billionaire, Philip Day.
At the time the group said it planned to invest in the site immediately; aiming to create new jobs in the long term and establish Tynwald Mills as a key place to visit for locals and tourists alike.
A spokesperson for company said it was both proud and excited to have secured such a fantastic site and looked forward to becoming part of the community.