Fashion and furniture retailer Laura Ashley has filed for administration blaming coronavirus on their recent financial troubles.
It is expected that up to 2,700 jobs are under threat, with stores in Lincoln, Gainsborough and Grantham on the brink of closure.
The firm had been in talks with lenders to access more funding and to continue trading.
It said however it could not get the money in time due to cashflow forecasts and virus uncertainty.
According to the company, “all available alternative options have been explored” and this is the only possible solution.
In a statement released on Tuesday, March 17, a spokesperson had announced that coronavirus was taking its toll.
“The Covid-19 outbreak has had an immediate and significant impact on trading, and ongoing developments indicate that this will be a sustained national situation.”
In another announcement today, Carphone Warehouse confirmed it would be closing all UK stores, resulting in hundreds of job losses.
The firm did not link the news to the outbreak of coronavirus in the UK.