Peacocks clothing chain enters administration (From Western Telegraph)
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Peacocks clothing chain enters administration
10:22am Thursday 19th January 2012 in News
Clothing chain Peacocks has gone into administration despite efforts to save it during a ten day stay of execution.
The ten day reprieve was announced on Monday (January 16th) but last night administrators KPMG were appointed and is searching for a buyer for the company as a going concern.
All stores will continue to operate as usual and no stores have been closed, the administrator's statement said.
Dozens of staff at Pembrokeshire's five Peacocks stores now face a tense wait to find out if their jobs are safe.
Bonmarche has not entered administration and continues to trade but following the filing of a notice to appoint administrators on Monday, the chain, owned by Peacocks, has ten days before administrators step in.
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.”
Preseli Pembrokeshire MP Stephen Crabb has urged Business Secretary, Rt Hon Vince Cable MP, to give the matter his urgent attention, especially as Peacocks’ bank RBS is now largely publicly owned following its own bailout.
He has also written to senior management at the Peacocks Head Office in Cardiff urging them to do all that they can to protect employees.
Speaking from the House of Commons this morning,Mr Crabb said: "This is very grave news indeed. We know that the retail sector is under enormous pressure right now but the loss of Peacocks stores would be a huge blow to our high streets.
“I am very concerned for the forty or so staff in Pembrokeshire who face a period of enormous uncertainty about their futures. Some of these employees have worked for Peacocks over many years. I am determined that they should be looked after properly whatever the outcome to all this.”
