Shops in Banchory, Oban, Ullapool, Stornoway and Kirkwall have shut permanently following a rescue deal affecting Edinburgh Woollen Mill (EWM)
Some of them closed for good late last year after EWM and sister business Ponden Homes crashed into administration.
Outlets saved from closure via the rescue package include north and north-east shops in Aberdeen, Inverurie, Fort Augustus, Spean Bridge, Fort William, Portree and John O’Groat’s .
While the Oban branch of EWM, on George Street, has shut for good, two other stores owned by the group in the town – McCraig’s Warehouse and Chalmers of Oban – were also saved and will reopen after lockdown.
A branch operating under the EWM brand at 10 Shore Street, Ullapool, shut for good last October, but the group’s outlet at 5 Shore Street, which trades as the West Highland Woollen Company, has been saved.
The rescue deal securing 1,453 jobs around the UK, was announced on Tuesday.
Administrators at FRP confirmed 246 stores in the Carlisle-headquartered EWM group would be saved by Purepay Retail, which is controlled by former owner Philip Day.
Bad news for unsecured creditors
The new owner will operate under licence across both brands, saving 1,347 shop workers, 72 employees at head office and a further 34 jobs at the company’s Carlisle distribution centre.
However, 85 stores have been permanently closed as part of the agreement. Another sister brand to EWM, fashion chain Peacocks, remains in administration.
Former owner Mr Day was a major secured creditor when EWM collapsed in November.
The Dubai-based businessman is behind the deal to rescue the retailer and lined up a series of international investors who will provide the cash it needs to continue trading.
It will see EWM continue to be controlled by Mr Day with new investors repaying him the money owed as a secured creditor.
Unsecured creditors including landlords and suppliers are unlikely to get back any money owed.
The deal will come too late for some staff too, with around one-third of the 2,571 employees already made redundant.
