Jobs lost as Shropshire Peacocks stores close
Staff at five Peacocks stores in Shropshire today lost their jobs after the ailing budget fashion chain was sold out of administration.
Two stores in Telford and branches in Market Drayton, Whitchurch and Oswestry have all ceased trading following the sale.
The deal with Edinburgh Woollen Mill will save 388 shops and more than 6,000 jobs but administrators from KPMG said it had been forced to close 224 stores including those in Shropshire with immediate effect, leading to 3,100 redundancies.
Peacocks, which had £240m of debt, went into administration and was put up for sale last month after it reportedly failed to persuade its lenders, including Barclays and Royal Bank of Scotland, to enter a debt for equity deal.
Chris Laverty, joint administrator and restructuring partner at KPMG, commented: “Today’s deal ensures the continued trading of a well known name on the high street. While it is unfortunate that redundancies have been necessary, we are pleased that we have been able to preserve the majority of the business and jobs.
“Like many other retailers, Peacocks suffered from a decline in consumer spending due to the tough economic conditions and this, combined with a surplus of stores and unsustainable capital structure led to the business becoming financially unviable. However, a strong brand presence and loyal customer following meant that Peacocks attracted a great deal of interest from both trade and private equity bidders, leading to today’s successful sale. I would take this opportunity to thank the management team and staff for their continued assistance in very difficult circumstances; their support has been invaluable in securing today’s sale."
Philip Day, chairman and chief executive of the Edinburgh Woollen Mill Group, based in Langholm in Scotland, said: "We look forward to working with our new colleagues to rebuild the business in what is a very tough economic environment for High Street retailers in the UK."
Mr Day said he hoped there would be scope to save more jobs and stores from those being forced to close due to performance issues and overhead pressures.
Edinburgh Woollen Mill last year bought 33 of Jane Norman's 94 stores out of administration, saving some 400 jobs.
Fashion chain Bonmarche, which was part of the Peacock Group, was sold last month in a deal that will lead to 1,400 job losses and 160 store closures. Private equity firm Sun European Partners bought 230 stores and will continue to employ 2,400 staff.
