West Mids job fears as Peacocks falls
Almost 600 jobs in the West Midlands could be at risk after clothing retailer Peacocks entered administration.
The group called in KPMG after discussions with potential investors ended. According to one source, chief executive Richard Kirk had at one point led a £65m offer for the company.
Peacocks operates about 611 stores and 49 concessions across the UK, including dozens in the West Midlands, and employs about 9,600 people.
More than half of the 400 staff at the company's Cardiff-based head office were told yesterday (19 January) they are losing ther jobs.
Private equity group Sun European Partners has emerged as a possible buyer for parts of the clothing chain.
Sun has shown a keen interest in UK retail brands recently. It acquired sports store American Golf and clothing chain Jacques Vert in December.
Entering administration opens Peacocks up to bids from buyers who may want to pick off the most attractive parts.
The company's Bonmarche chain, which is not in administration, is in separate talks with a potential purchaser, believed to be Sun European Partners.
Chief executive Kirk thanked his colleagues in a statement and said: "Peacocks is a brand with great heritage, and it is with deep sadness that we have been left with no other option but to today place the business into administration.
"We have worked tirelessly over the past year to agree a new financial structure to take the business forward in the current, tough retail environment, including seeking new investment for the business. This is a hugely sad development for all of our stakeholders, especially our employees who have shown total commitment to the business over an uncertain and difficult period."
Chris Laverty, joint administrator and restructuring partner at KPMG, said: "Like many retailers Peacocks has suffered from tough economic conditions, which have seen its customers reduce their spending on the high street.
"This factor, combined with a surplus of stores and high overheads, led to the business becoming financially unviable in its current form."
