Peacocks sold to Edinburgh Woollen Mill

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Peacocks has been sold to Edinburgh Woollen Mill, which has acquired 388 stores and concessions, out of administration.

The deal has protected around 6,000 jobs but means 224 stores will close down today (see below for full list), resulting in 3,100 job losses and an additional 16 redundancies at Peacocks’ head office in Wales.

It emerged today that Edinburgh Woollen Mill had re-entered eleventh hour bidding discussions for the retailer after it pulled out of the process on February 7.

Debt-laden Peacocks collapsed into administration last month after banks walked away from discussions about a possible sale to then-boss Richard Kirk. KPMG was appointed administrator.

Edinburgh Woollen Mill has bought the Peacocks brand in addition to the stores and concessions.

KPMG joint administrator Chris Laverty said: “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.”

Retail Week revealed last month that Edinburgh Woollen Mill, which owns Jane Norman, was eyeing Peacocks stores as it looked towards opening 250 high street and mall stores this year.

Conlumino managing director Neil Saunders said: “Edinburgh Woollen Mill’s traditional customer base lies at the older end of the age spectrum and it makes strategic sense for the group to balance its business with brands focused on the younger consumers. This processes started with Jane Norman and Peacocks will now aid the group in attainting critical mass and a reasonable market share in the young, fashion focused market.”