Laura Ashley, a well-known British fashion home retailer, said on Tuesday that the bankruptcy process will be initiated because the new crown virus epidemic has had a "direct and significant" impact on the company's performance, causing its stock price to fall sharply by more than 64%.

Laura Ashley was once known for its creative furnishings. Its main products include coatings, wallpaper, curtains, carpets, furniture and children's clothing. The brand was founded in 1953 and was primarily fashion-oriented, but co-founder Laura Ashley decided to enter the home market in 1980 and launched a series of home products in 1981. In 1982, the brand launched a series of interior decoration products.

Movie star Audrey Hepburn once wore a Laura Ashley scarf in "Roman Holiday" to make the brand famous. In the 1980s, Laura Ashley reached its heyday and was one of the favorites of the late Princess Diana. In 1998, Laura Ashley was acquired by the Malaysian family company MUI Asia.

In the past few years, the UK's retail environment has become increasingly severe. Previously, the British high-end department store House of Fraser and the British old-fashioned department store Debenhams have entered the stage of bankruptcy management and bankruptcy liquidation. Laura Ashley has also encountered sales declines, store closures, and weak home decoration business Unfavorable situation.

Laura Ashley's financial report for the first half of the fiscal year 2019/2020 as of December 31, 2019, released on February 20, showed that sales fell 10.8% year-on-year to 109.6 million pounds and a loss before tax of 4 million pounds. But management still expressed optimism at that time, because sales in the first seven weeks of the second half of the fiscal year were flat compared to the same period last year, "a sign of encouragement that proves that our transformation strategy has started to bear fruit.

Laura Ashley said the outbreak of the New Crown epidemic "has had a direct and significant impact on the business, and current developments show that this situation cannot be reversed in the short term."

Laura Ashley intends to appoint Robert Lewis and Zelf Hussain as bankruptcy administrators, and said he is not sure whether the company's shareholders will have any remaining assets.

Laura Ashley's bankruptcy will cost 2,700 employees jobs and the company's shares will be suspended. As of Tuesday's close, its share price had fallen to 0.305 pounds.

Late last year, Laura Ashley applied for a £ 20 million loan from Wells Fargo Bank. However, due to recent fluctuations in the Group's inventory and deposit levels, the amount of loans that the Group can withdraw at Wells Fargo has decreased.

On February 16, The Times reported that Laura Ashley's major shareholder, MUI Asia, was taking emergency injections to help Laura Ashley get out of financial trouble. Laura Ashley's lender, Wells Fargo, has imposed restrictions on Laura Ashley's loan cash withdrawals, which has led Laura Ashley to seek help from its shareholders.

The company said it was in in-depth negotiations on third-party debt financing, but was unable to obtain more funds from the lenders in a timely manner. Its largest shareholder, MUI Asia, also confirmed that it will not be able to provide the required financial support.

Last February, Flacks Group, an investment company owned by British businessman Michael Flacks, had stated its intention to acquire Laura Ashley at a valuation of 20 million pounds. Since then, Laura Ashley has rejected the bid, saying that the offer does not reflect Laura Ashley's brand value