200 Peacocks stores saved from closure
A buyer's been found for the collapsed fashion chain.
Last updated 6th Apr 2021
Retail chain Peacocks has been saved by a senior executive with backing from an international consortium, it has been announced.
Chief operating officer Steve Simpson will take over the business, saving 2,000 jobs and 200 stores, which he hopes to reopen once lockdown restrictions on non-essential retailers ease.
The chain was part of retail mogul Philip Day’s Edinburgh Woollen Mill (EWM) fashion empire which collapsed in November last year.
Mr Day was the biggest creditor of Peacocks and is owed money by the business he once owned.
Administrators FRP negotiated a deal with him by signing a deferred loan agreement between a consortium of investors and the businessman which will eventually see him get his money out of the company.
The consortium of international backers are primarily based in Dubai, where Mr Day lives.
A similar deal was set in place with the EWM and Bonmarche brands, while Mr Day’s other brand, Jaeger, was sold to Marks & Spencer, where it will become an online-only business.
The deal essentially sees the EWM brands – excluding Jaeger – reform under the old management led by Mr Simpson.
Mr Day will not be in control of the business – ending several decades of involvement in the UK high street – and will hope to recoup the cash he invested as a secured creditor through the deal.
Unsecured creditors, including landlords, suppliers and the taxman, will lose out and are unlikely to get their money back.
According to reports, Sports Direct tycoon Mike Ashley was also said to be interested in the Peacocks brand, although administrators failed to reach an agreement with him.
Peacocks had 400 stores going into the pandemic a year ago and announced a series of job losses and store closures as it struggled to manage under the various restrictions.
The chain had a poor online presence compared with rivals and – along with Arcadia and Debenhams – struggled to recoup business through its websites, leading to its collapse.
Who owns the high street chains?
Burtons and Dorothy Perkins
Online retailer Boohoo have bought both the Dorothy Perkins and Burton brands from Arcadia group. They haven't taken the actual shops though, which will permanently close.
Wallis
Fashion brand Wallis was also part of the £25.2 million deal that Boohoo made for parts of the Arcadia group, including Burton and Dorothy Perkins, which mean the Wallis shops will also leave the High Street.
Topshop & Topman
ASOS have bought this part of the failed Arcadia group, paying £292 million for brands including Topshop and Topman. The shops themselves were not part of the deal though, so it looks like they will close.
Miss Selfridge
Miss Selfridge was another one of the brands that ASOS bought alongside Topshop, Topman and HIIT and will also mean the shops will close.
Debenhams
Boohoo have also bought the Debenhams in a £55 million deal which saw the company's 242-year-old name survive but all 118 stores shut.
Oasis and Warehouse
Boohoo have been expanding for the last few years - in 2020 they bought Oasis and Warehouse's online element for £5.25 million as the shops had already closed.
Karen Millen & Coast
Boohoo also bought the brands Karen Millen and Coast in 2019 when it went into administration and stores closed.