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Clothing retailer Peacocks enters administration | Clothing retailer Peacocks enters administration |
(40 minutes later) | |
Clothing retailer Peacocks has gone into administration, it has been confirmed. | Clothing retailer Peacocks has gone into administration, it has been confirmed. |
Staff at the company's Cardiff HQ were told of the move by chief executive Richard Kirk on Wednesday afternoon. | Staff at the company's Cardiff HQ were told of the move by chief executive Richard Kirk on Wednesday afternoon. |
The firm, which has tried unsuccessfully to restructure its £240m debts, employs more than 400 in Cardiff and over 9,000 others across the UK. | The firm, which has tried unsuccessfully to restructure its £240m debts, employs more than 400 in Cardiff and over 9,000 others across the UK. |
Mr Kirk was given a round of applause by staff after a speech saying he had done all he could to save the company. | Mr Kirk was given a round of applause by staff after a speech saying he had done all he could to save the company. |
In a statement he thanked the firm's staff and 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. | In a statement he thanked the firm's staff and 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. | "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." | "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." |
The Peacocks business operates around 611 stores and 49 concessions across Wales, Northern Ireland, Scotland, and England and employs approximately 9,600. | The Peacocks business operates around 611 stores and 49 concessions across Wales, Northern Ireland, Scotland, and England and employs approximately 9,600. |
Staff told the BBC they expect to find out on Thursday who may be losing their jobs. It is understood the stores will stay open and the slimmed-down company will be sold on. | Staff told the BBC they expect to find out on Thursday who may be losing their jobs. It is understood the stores will stay open and the slimmed-down company will be sold on. |
KPMG confirmed that the joint administrators - Richard Fleming, Chris Laverty, Ed Boyle and Joff Pope - would run the company while actively seeking a buyer for it as a going concern. | KPMG confirmed that the joint administrators - Richard Fleming, Chris Laverty, Ed Boyle and Joff Pope - would run the company while actively seeking a buyer for it as a going concern. |
All stores would continue to operate as usual, said KPMG in a statement. No stores had been closed and there had been no immediate redundancies. | All stores would continue to operate as usual, said KPMG in a statement. No stores had been closed and there had been no immediate redundancies. |
The Bonmarché business, which employs approximately 3,800 staff and is also owned by The Peacock Group plc, has not entered administration, said the statement. | The Bonmarché business, which employs approximately 3,800 staff and is also owned by The Peacock Group plc, has not entered administration, said the statement. |
'Viable business' | 'Viable business' |
However, the business filed a notice of intention to appoint administrators on Monday. The notice allows 10 working days before the appointment of administrators. A buyer is being sought for the business. | However, the business filed a notice of intention to appoint administrators on Monday. The notice allows 10 working days before the appointment of administrators. A buyer is being sought for the business. |
Mr 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. | Mr 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." | "This factor, combined with a surplus of stores and high overheads, led to the business becoming financially unviable in its current form." |
Mr Fleming added: "We are actively seeking a buyer for the 611 stores and 49 concessions and encourage interested parties to get in touch." | Mr Fleming added: "We are actively seeking a buyer for the 611 stores and 49 concessions and encourage interested parties to get in touch." |
A spokesman for Barclays said: "This is not the end for Peacocks, there is a viable business here and our support continues". | A spokesman for Barclays said: "This is not the end for Peacocks, there is a viable business here and our support continues". |
UK Employment Minister Chris Grayling told BBC Radio Wales that he hoped Peacocks could be sold as a "going concern". | UK Employment Minister Chris Grayling told BBC Radio Wales that he hoped Peacocks could be sold as a "going concern". |
He said it was "disappointing news" and he felt "desperately" for those involved. | He said it was "disappointing news" and he felt "desperately" for those involved. |
Earlier Welsh Secretary Cheryl Gillan had said the UK government would look at what it could do to help the firm. | Earlier Welsh Secretary Cheryl Gillan had said the UK government would look at what it could do to help the firm. |
But she warned she would not make early or false promises about the future of the Cardiff-based business. | But she warned she would not make early or false promises about the future of the Cardiff-based business. |
On Tuesday Welsh Labour MPs called on UK Business Secretary Vince Cable to take action to help save the company. | On Tuesday Welsh Labour MPs called on UK Business Secretary Vince Cable to take action to help save the company. |
They warned in a letter that the Cardiff-based firm may be forced into administration because banks are "refusing to provide further working capital". | They warned in a letter that the Cardiff-based firm may be forced into administration because banks are "refusing to provide further working capital". |
Do you work for Peacocks? Are you concerned about your future? Please get in touch using the form below. |