Business

2,000 jobs lost in rescue of High Street fashion chain Peacocks

Peacocks deal sees 2,000 jobs lost: Fashion chain to return to High Street after rescue by previous administration crew

Fashion chain Peacocks will return to the High Street with 2,000 fewer employees after it was rescued from administration by its previous administration crew.

Chief working officer Steve Simpson will take over the business, with the backing of a consortium of Middle Eastern buyers, based totally in Dubai.

The deal protects solely half of the 4,000 jobs and 200 of its 400 shops won’t reopen.

Saved: Fashion chain Peacocks is about to return to the High Street however 200 of its 400 shops won’t reopen 

The chain was half of billionaire retail mogul Philip Day’s Edinburgh Woollen Mill (EWM) fashion empire.

The group was made up of 5 manufacturers: Edinburgh Woollen Mill, Peacocks, Jaeger, Bonmarche and Ponden Home.

The Edinburgh Woollen Mill and Ponden Home chains collapsed into administration at first of November, with Peacocks and Jaeger following swimsuit a fortnight later. Bonmarche went into administration in December, the second time it had gone bust in 14 months.

Edinburgh Woollen Mill, Ponden Home and Bonmarche had been then rescued in January by the syndicate of buyers which has purchased Peacocks.

Marks & Spencer purchased Jaeger in the identical month, taking it online-only, resulting in the closure of 67 shops and the loss of greater than 300 jobs.

Day is not in management of the EWM group following many years as the pinnacle of a serious participant on the High Street. But company sources stated the tycoon, who lives in Dubai, helped in the hunt for a brand new purchaser for Peacocks.

Unsecured collectors, together with landlords, suppliers and the taxman, will lose out and are unlikely to get their money again. Sports Direct’s Mike Ashley was in Peacocks, however directors failed to succeed in an settlement with him.

Peacocks had 400 shops going into the pandemic a year in the past and introduced a sequence of job losses and retailer closures final year because it struggled to handle underneath the varied restrictions.

It was one of the highest-profile business failures of the pandemic, together with Topshop proprietor Arcadia and Debenhams, whose collapse led to 23,000 job losses and 600 retailer closures.

Around 16,000 outlets closed their doorways completely final year, and it’s anticipated that 400,000 retail employees will lose their jobs in 2020 and 2021.

Last evening Mike Ashley’s Frasers Group stated it had been frozen out of the sale course of by Peacocks’s administrator. 

It stated FRP Advisory denied entry to key details about the model’s property, stock and funds, making it ‘virtually impossible’ to make a reputable supply.

Advertisement

Back to top button