The collapsed fashion retailer Peacocks has been saved from administration after a buyout from a senior executive and with backing from an international investment consortium
Edinburgh Woollen Mill Group’s (EWM) chief operating officer Steve Simpson backed by an international investment consortium will take over the business, rescuing it from collapse after it went into administration in November last year.
With the new deal, Simpson, the investors, and Peacocks new management team, have planned for no job losses, protecting approximately 2,000 jobs across its 200 stores. The company hopes, with support of their partners, suppliers and landlords, to reopen its remaining stores once lockdown restrictions on non-essential retailers ease on 12 April.
The transaction, negotiated by Peacocks administrator FRP, sees the new owners agreeing to provide sufficient working capital to enable the business to emerge from administration. As leading secured creditor, Edinburgh Woollen Mill Group has agreed to utilise its security and provide a deferred loan to the consortium. No figures have been disclosed about the value of the deal.
Peacocks originally was part of the Philip Day-owned Edinburgh Woollen Mill fashion retail empire. Peacocks, like many other retail outlets, suffered from the effects that the Covid19 restrictions placed on industry. It had already shut 200 of its stores and made 2000 redundancies before falling into administration in November 2020.
In a statement by FRP, the Edinburgh Woollen Mill Group says it is pleased to have come to an agreement with FRP and the investment consortium and believes that Peacocks will have the opportunity to stabilise under the new ownership.