UPDATE: UK: Peacocks enters administration
Author: Petah Marian | 18 January 2012
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Administrators are seeking a buyer for the Peacocks chain |
Peacocks has formally entered administration this-afternoon (18 January), with KPMG appointed as administrators to the UK value clothing retailer.
KPMG said it will continue to trade the company, which operates 611 stores, while seeking a buyer for the business as a going concern. All stores are continuing to operate as usual, and there have been no immediate redundancies today, it added.
The Bonmarche business, which is also owned by The Peacock Group, has not entered administration and continues to trade. It also filed a notice to appoint administrators on Monday, a move that gives it 10 working days before the appointment. A buyer is being sought for the business.
"Like many retailers Peacocks has suffered from tough economic conditions, which have seen its customers reduce their spending on the high street," said Chris Laverty, joint administrator and restructuring partner at KPMG. "This factor, combined with a surplus of stores and high overheads, led to the business becoming financially unviable in its current form."
The chain is saddled with debts of about GBP240m (US$370m). It has been in discussions with advisors for some time on the restructuring of the business, but suffered a significant blow when principle banker RBS reportedly walked away from refinancing talks.
Companies: Peacocks
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