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Peacocks: Clothing firm's staff braced for job losses Peacocks: Clothing firm's staff braced for job losses
(about 1 hour later)
Staff at clothing retailer Peacocks are expected to start learning later who will lose their jobs.Staff at clothing retailer Peacocks are expected to start learning later who will lose their jobs.
The company confirmed on Wednesday that it had entered administration after failing to restructure its £240m debts.The company confirmed on Wednesday that it had entered administration after failing to restructure its £240m debts.
Joint administrators from KPMG are now running the firm, which employs more than 400 in Cardiff and more than 9,000 others across the UK. Administrators KPMG now running the firm, which employs more than 400 in Cardiff and more than 9,000 others across the UK, said they hoped to make as few redundancies as possible.
They said they were actively seeking a buyer for it as a going concern.They said they were actively seeking a buyer for it as a going concern.
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.
'Sad development''Sad development'
Mr Kirk told staff he had done all he could to save the company.Mr Kirk told staff he had done all he could to save the company.
The critical thing now is this company is now in the hands of KPMG which are the administrators. The critical thing now is this company is in the hands of KPMG which are the administrators.
All the stores will remain open today and they are going to continue to trade.All the stores will remain open today and they are going to continue to trade.
I spoke with the administrator Chris Laverty last night.I spoke with the administrator Chris Laverty last night.
She said inevitably there will be redundancies and it will be a slimmed down operation.She said inevitably there will be redundancies and it will be a slimmed down operation.
A number of staff are feeling today may be a day of reckoning, a day that they find out - to put it bluntly - whether they have a future with the company or not.A number of staff are feeling today may be a day of reckoning, a day that they find out - to put it bluntly - whether they have a future with the company or not.
I suspect it may take a little longer than that for many of them but at the same time they will certainly have an indication as to the direction things are going.I suspect it may take a little longer than that for many of them but at the same time they will certainly have an indication as to the direction things are going.
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 about 611 stores and 49 concessions across Wales, Northern Ireland, Scotland, and England and employs approximately 9,600.The Peacocks business operates about 611 stores and 49 concessions across Wales, Northern Ireland, Scotland, and England and employs approximately 9,600.
It is understood the stores will stay open and the slimmed-down company will be sold on.
Increasing sales
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.
Dr Jonathan Deacon from Newport Business School told BBC Radio Wales he expected KPMG to keep key personnel at Peacocks while it searched for a buyer. Workers' buy-out
"Here you have a company that is trading profitably," he said. Ms Laverty told BBC Wales: "What we are hoping obviously is to make as few redundancies as we can and we are hoping not to make store redundancies.
"In a world of retail that's been hit so badly in the last year this retail organisation has had increasing sales of around about 17%. "If we have to close some stores then we will inevitably have to make some some redundancies."
"So it's in a pretty health state if it weren't for this huge debt. Dr Jonathan Deacon from Newport Business School suggested to BBC Radio Wales that a co-operative model might be used to secure Peacocks' future.
"KPMG will in the short term be looking to maintain the value that's invested in the company - so in effect keeping all those key people in place because they will be the value of the company when it finds a likely buyer." He said: "My ideal would be save this company for Wales, save all those fantastic, innovative, entrepreneurial, creative people in that company.
"It's got a great management. Why don't we look at an option to think about a workers' buy-out and create another John Lewis? Have a co-operative taking place."
"Fairly grim"
Wales Office minister David Jones said the UK government was very keen on the John Lewis model.
But he added: "When a company is in administration it's rather hard to make the sort of calm decisions that are required.
"Certainly we will continue to talk to all parties about this but the fact remains that this company is now in administration.
"It is the administrators at the moment who are in charge of Peacocks and it is the administrators everybody will have to deal with."
Meanwhile financial journalist Mickey Clark told BBC Radio Wales that things were looking "fairly grim" for Peacocks staff, despite talk of a potential private equity bidder for the firm.Meanwhile financial journalist Mickey Clark told BBC Radio Wales that things were looking "fairly grim" for Peacocks staff, despite talk of a potential private equity bidder for the firm.
"I still suspect that whoever buys it is going to come in, close stores (and) make job losses," he said."I still suspect that whoever buys it is going to come in, close stores (and) make job losses," he said.
"It does seem inevitably at this stage, unfortunately.""It does seem inevitably at this stage, unfortunately."
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