|
|
| UK fashion giant collapses |
   
Posted Date: 19/01/2012
By Inside Retail
Saddled with £240 million debt, British value clothing retailer Peacocks was placed in administration overnight.
It’s the UK retail sector’s biggest collapse since the high profile demise of the Woolworths variety stores in 2008.
Peacocks has 611 stores and 49 concessions and employs 9600 staff.
KPMG has been appointed administrator and says it will keep the business trading while it assesses options for sale as a going concern. No stores have closed as yet and no staff made redundant.
It is likely the business will be viable post administration without such a high debt level to service. One banker, despite potentially losing a substantial outstanding debt, said it would continue to support the business which it believed was viable.
“Like many retailers, Peacocks has suffered from tough economic conditions, which have seen its customers reduce their spending on the high street,” Chris Laverty, joint administrator and restructuring partner with KPMG, said.
“This factor, combined with a surplus of stores and high overheads, led to the business becoming financially unviable in its current form.”
CEO Richard Kirk has been working to prevent the business falling into administration and UK’s Retail Week reports he is likely to mount a bid for the chain after a mystery backer withdrew at the 11th hour.
Peacocks has a sister chain Bonmarche which has not entered into administration. That chain, reports Retail Week, is likely to be rescued by private equity company Sun European, but up to half the company’s 397 store network may be shuttered if the deal goes through. |
Join the discussion online: Be the first to leave a comment.
Please note: all comments are subject to moderation for legal reasons and to prevent spam. We'll approve your comment as quickly as we can. If you don't see it appear you do not need to repost it.
|
|