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249 jobs cut as Peacocks enters administration

Clothing retailer Peacocks will make 249 redundancies at its head office, as the company announces it has gone into administration.

Joint administrators from KPMG have been appointed to Peacocks and all its components that make up the budget high street chain.

Chris Laverty, joint administrator and restructuring partner at KPMG, said: “It is with regret that we have made 249 redundancies at Peacock’s head office in Cardiff, which follow a commercial review of the staffing levels of the business.

“No stores have been closed and will continue to operate as normal whilst we actively search for a buyer for the business.”

Peacocks currently operates around 611 stores, including 27 in the North East, and 49 concession across Northern Ireland, Scotland, England and Wales, employing some 9,600 people overall.

In a statement, Richard Kirk, chief executive, 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.

“I would like to take this opportunity to thank all colleagues for their hard work and dedication during their time with the Group.”

KPMG administrators Richard Fleming, Chris Laverty, Ed Boyle and Joff Pope will continue to run the company while actively seeking a buyer.

No immediate store closures have been announced, and The Bonmarché business, also owned by The Peacock Group plc, has not entered administration yet.

The business filed a notice of intention to appoint administrators on Monday January 16, as a buyer is being sought for the business.

Mr Laverty commented: “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.”

Richard Fleming, joint administrator and UK head of restructuring at KPMG, added: “We are actively seeking a buyer for the 611 stores and 49 concessions and encourage interested parties to get in touch.”

This was posted in Bdaily's Members' News section by Tom Keighley .