Value retail operator Peacock Group has agreed to be acquired by a group including company managers for £404.4 million.

Peacock, which operates about 843 stores under the Peacocks, bonmarché and The Fragrance Shop names, will be 43.3 per cent held by managers including chief executive Richard Kirk.

The buyout of the Cardiff, Wales-based company is being financed by US hedge funds Och-Ziff and Perry Capital, and Echelon, with extra funding from investment bank Goldman Sachs.

Peacock posted a 6.1 per cent sales increase for the 13 weeks to1 October, and said it was satisfied with its performance during a challenging retail environment.