- Huw Hughes |
Collapsed British fashion chain Peacocks has been bought out of administration.
The company has been snapped up by an international investment consortium lead by the discount retailer’s former chief operating officer, Steve Simpson.
The consortium has agreed to provide “sufficient working capital” to enable the business to emerge from administration, while Peacock’s former owner, Edinburgh Woollen Mill (EWM), has agreed to utilise its security and provide a deferred loan to the consortium.
Administrators from FRP said in a statement that Peacocks’ management team - with the support of their partners, suppliers and landlords - hope to be able to reopen up to 200 stores when the lockdown rules ease and protect approximately 2,000 jobs.
The company had around 400 stores when EWM collapsed in November.
Peacocks saved from administration
FRP said Peacocks hopes all 1,850 store staff currently on furlough will be able to return to work once stores reopen, along with more than 150 colleagues in head office and support.
The transaction “will provide another chance for Peacocks stores, which was placed in administration last November due to the devastating effects of the Covid-19 lockdown on the business”, FRP said.
A similar deal was secured in January for EWM’s namesake brand as well as Bonmarché and Ponden Home after FRP struck a deal with international investors.
That news emerged the same week it was confirmed that Marks & Spencer had acquired London-based Jaeger, which was also previously owned by EWM.
The deal saw 233 jobs cut at Jaeger and all 63 of its stores and concessions permanently closed as it pivoted to an online-only business.
Image: Peacocks, Facebook