High street fashion chains Oasis and Warehouse are reportedly close to entering administration, putting thousands of jobs at risk.
The Oasis and Warehouse Group, which runs nearly 90 outlets across the UK and hundreds of concessions in bigger stores, is on the verge of appointing advisory firm Deloitte as administrators, according to Sky News.
The group is owned by failed Icelandic bank Kaupthing and currently employs around 2,300 people in Britain.
Kaupthing has reportedly been in talks to try and find a buyer for weeks.
If administrators are appointed, employees are likely to be furloughed under the Government’s job retention scheme with 80 per cent of their pay until a buyer can be found for the business.
Andy Barr, retail expert and co-founder of online price tracking website Alertr, said: “Here are another two popular clothing retailers that join the long list of those expecting or already going into administration.
“It seems that despite the help from the government that has been offered to those struggling with the ramifications of the Covid-19 pandemic, it just isn’t enough to keep these particular companies afloat during lockdown.”
He added: “High street retailers like Warehouse and Oasis, who were already struggling beforehand, are now facing the final curtain call.
“It will be interesting to see how the more traditionally popular brands like Topshop, H&M and River Island fare in the coming weeks.”
The high street has seen a spate of administrations since the government announced the UK’s lockdown.
Debenhams announced it was entering administration, casting doubt on 22,000 jobs, while retailer Cath Kidston is also reportedly on the brink of collapse.