The company said “increased uncertainty” arising from the Covid-19 outbreak meant it was unable to secure necessary funds from stakeholders.
In a statement, Laura Ashley said it had hired advisers from financial services firm PwC to oversee administration – the process whereby a troubled company calls in outside expertise to try and minimise job losses.
Despite some recent poor trading, the retailer said it had experienced rising sales in recent weeks.
“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,” said the company, whose shares have been suspended.
The British company is controlled by Malaysia’s MUI Group.