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Peacocks: 249 Cardiff HQ staff lose jobs, say administrators KPMG | |
(40 minutes later) | |
A total of 249 head office staff - almost half the workforce - at clothing retailer Peacocks are losing their jobs. | |
Those affected were called into a meeting at the Cardiff headquarters. | |
The company entered administration on Wednesday after failing to restructure £240m debts. | |
Peacocks stores employing more than 9,000 across the UK will remain open as administrators seek a buyer for the business as a going concern. | |
Administrators say 266 head office staff will keep their jobs while the search takes place. | |
Chris Laverty, joint administrator and restructuring partner at KPMG, said: "It is with regret we have made 249 redundancies at Peacocks' 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." | |
'Skeleton' staff | 'Skeleton' staff |
Catrin Jones, head of merchandising at Peacocks, told BBC Wales: "The administrators called us all into a room ... and we were told that we were the ones that are losing the jobs today. | |
"The rest are staying on - they are skeleton staff basically staying just to ensure the company ticks over as a going concern." | "The rest are staying on - they are skeleton staff basically staying just to ensure the company ticks over as a going concern." |
Welsh business minister Edwina Hart AM called it a devastating blow. | |
"It is extremely regretful that agreement could not be reached to safeguard more head office jobs in Cardiff," she said. | |
"We are in contact with the administrators KPMG and remain hopeful that as many stores and jobs as possible across the UK can still be saved." | |
Meanwhile at Westminster, MPs challenged ministers to stop the state-owned Royal Bank of Scotland (RBS) from withdrawing support for Peacocks. | |
Liberal Democrat MP Bob Russell said the UK Government had the power to step in, given that RBS is 83% owned by the taxpayer. | |
In a question to Commons Leader Sir George Young, Mr Russell said: "Is it not the role of government, when it owns the bank, to intervene and can we have a debate?" | |
Sir George said: "I would be cautious about the government intervening and trying to micro-manage lending decisions which I think are best taken by the banks." | |
RBS has said it had been supportive of the company but "new investors willing to inject sufficient capital could not be found". | |
On Wednesday, Peacocks chief executive Richard Kirk issued a statement thanking staff after the company confirmed it was entering administration. | |
"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," he 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," he said. |
"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. |
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. |
Ms Laverty told BBC Wales on Wednesday: "What we are hoping obviously is to make as few redundancies as we can and we are hoping not to make store redundancies. | Ms Laverty told BBC Wales on Wednesday: "What we are hoping obviously is to make as few redundancies as we can and we are hoping not to make store redundancies. |
Workers' buy-out | Workers' buy-out |
"If we have to close some stores then we will inevitably have to make some some redundancies." | "If we have to close some stores then we will inevitably have to make some some redundancies." |
Dr Jonathan Deacon from Newport Business School suggested to BBC Radio Wales that a co-operative model might be used to secure Peacocks' future. | Dr Jonathan Deacon from Newport Business School suggested to BBC Radio Wales that a co-operative model might be used to secure Peacocks' future. |
He said: "My ideal would be save this company for Wales, save all those fantastic, innovative, entrepreneurial, creative people in that company. | 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." | "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." |
Wales Office minister David Jones said the UK government was very keen on the John Lewis model. | 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. | 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. | "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." | "It is the administrators at the moment who are in charge of Peacocks and it is the administrators everybody will have to deal with." |
Do you work for Peacocks? Are you worried about losing your job? Send us your comments using the form below: | Do you work for Peacocks? Are you worried about losing your job? Send us your comments using the form below: |