Historic Perth Department Store to close
McEwen's of Perth to close after almost 150 years of trading
An historic Scottish department store with shops across the country is to close, with 130 staff facing redundancy.
Family-run McEwens of Perth, which opened almost 150 years ago, has two outlets in the city as well as premises in Oban, Argyll and Bute, and Ballater, Aberdeenshire.
Owners John and Georgina Bullough said:
“ It is with great sadness and regret that we have had to put McEwens of Perth Ltd into administration this morning. Since we purchased the business in 2008, we have battled against unprecedented challenges. These include the immediate credit crunch, a dramatic change in shopping habits, the rise of the internet, the growth of out of town shopping, plus low consumer confidence linked to political and economic uncertainty. In 2010 McEwens of Perth was placed into GRG, the ‘recoveries’ arm of the Royal Bank of Scotland. Despite these difficulties we have worked hard with little to no working capital but with fantastic and loyal staff, to make McEwens the very best it could be. Sadly this has not delivered the increase in trade that was necessary to keep the business solvent. We have left no stone unturned trying to find a partner or a purchaser to take McEwens forward. Our exhaustive searches led to very positive discussions with national retailers, property investors and corporate finance providers, but sadly none of these negotiations resulted in a solution.
“We are very grateful for the efforts and advice we received and would like to thank everyone who showed their support, including those loyal customers that enjoyed McEwens over the years. They share our affection and commitment to Perth City and the vibrant future it deserves. Our thoughts at this difficult time are with the 130 people employed within McEwens in the stores in Ballater, Oban and Perth who all face redundancy. We hope that they find new jobs quickly and are grateful that Perth & Kinross Council has a team stood by to assist with this."
Councillor Ian Miller, Leader of Perth & Kinross Council said: “The closure of McEwens is a significant loss for Perth and the wider region, and our thoughts are with the owners and employees during what I can only imagine is a devastating time.
“McEwens is a Perth institution dating back over a hundred years and has been a unique feature on the city’s landscape since it first opened its doors. As the only independent department store in Scotland it stood the test of time and for many was the reason for a visit to the city.
“What this loss will mean to the city will become apparent over time but for now, the Council’s priority is to offer whatever support we can to the employees affected by this very sad turn of events.
“The Council has exhaustively examined all of the available options and means of support regarding the future of McEwens, and it is with regret that we are not able to step in and purchase the properties.
“This decision has not been taken lightly and unfortunately within the timeframe available to act it is not financially or legally possible for us to do so. Where we could take action we did by setting aside the payment plan for the 2015/16 business rates which are past due for the premises.
“We will work with the employees who have been affected and make available our dedicated resources to help them find suitable employment as quickly as possible.
“Looking ahead, the Council will work together with its partners to review the City Plan following this announcement with a view to exploring how we can support additional employment opportunities within the city centre. We will consider the position we now face and all of the options available to us in terms of what support we can offer the both the Perth retail sector and wider industries of the region which could be impacted by this sad turn of events.”
McEwens first opened in Perth in 1868 and the original shop still stands on the same site.
After the Bulloughs' bought the business in 1982, they expanded, opening a shop in Inverness in 2000 and expanding and relocating their Ballater store in 2007 - which was formally opened by the Prince of Wales and the Duchess of Rothesay.
The Inverness store closed in 2013 in a bid to preserve the profitability of other branches''.