Laura Ashley has made 268 employees redundant across its head office and back-office functions.
All staff affected will be paid up to and including their last day of employment.
In addition to the redundancies, 1,669 store employees have been furloughed from 31 March.
Rob Lewis, joint administrator and PwC partner, said: “It is obviously disappointing to have to announce redundancies at what is already a challenging time for individuals dealing with Covid-19 disruption.
“However, we have taken this difficult step to improve the viability of the business while we continue to engage with interested parties around a potential sale. We will, of course, provide all affected staff with the necessary support during this difficult time, which will include working with various agencies and employers who have vacancies. We will also be providing support to those staff and the many remaining staff in the group’s operations in Newtown, Coalville and head office in Chelsea.
“We would like to thank the employees for the support, service and cooperation they have provided to Laura Ashley, both before and during the period of administration to date.
“Alongside supporting staff, our key objective as administrators is to progress the solid expressions of interest from parties who are interested in acquiring the business. We believe there is strong value in the group and the brand, and we remain focused on doing all we can to achieve a sale.”