Shaws the Drapers has gone into liquidation after 110 years of business. The company, which operated 28 stores across Wales and England, appears to have told staff in an email that after an 'extremely challenging' year, the business would go into voluntary liquidation and employees would be let go.
Screenshots of an email apparently sent to staff have been shared on social media. In the email, owner Philip Shaw, 57 told staff: "You will recall from our letter to you earlier this month that trading has been extremely challenging this year and we'd hoped in the New Year to discuss some significant changes to the business with you, in the hope that we could create a business capable of being profitable in 2023.
"Over the course of the last week, we have reached a conclusion that the business is no longer viable and we are about to place the company into voluntary liquidation. This will result in the closure of the business and sadly the end of your employment."
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Insolvency company Stones & Co of Swansea confirmed that it had been instructed to assist the directors of Shaws with voluntary liquidation. The company ceased trading on December 23, 2022, and liquidators understand that former employees have been paid their outstanding wages and holiday pay.
The closure follows reports that Shaws branches had been selling stock at bargain prices and that some branches had 'unexpectedly' closed. Shaws has been a mainstay across south Wales from Haverfordwest and Carmarthen to Cardiff and Newport, as well as locations in England including Bristol, Bath, Exeter and Swindon.
Branded online and at some locations as Shawsdirect.com, the stores sold soft furnishings as well as craft equipment including wool and yarn. The company was formed in Cardiff in 1912.
Mr Shaw continued: "I hope that you will understand that after 100 years of trading, this hasn't been an easy decision for us to make, and we fully appreciate the consequences for you, but the business simply is not viable and we cannot see a way of making it so. Thank you for your loyal service and support and we wish you every success for the future."
A spokesperson for Stones & Co said: "Stones & Co Insolvency Practitioners Limited t/a Stones & Co, Swansea, have been instructed today by the Directors of Shaws (Cardiff) Limited to assist them in placing the Company into Creditors' Voluntary Liquidation. A member's meeting under the deemed consent procedure will be held on 10th January 2023 at which resolutions will be passed to wind up the Company voluntarily and to appoint Gareth Stones MIPA as Liquidator of the Company."
Shaws the Drapers has been approached for comment. Geoff Ready Services has been engaged to value the company's remaining assets.
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