Following on from our blog of Tuesday about Peacocks, the company has been put into administration as no buyer could be found quickly. However, the administrators at KPMG have said that they are trading the business for the time being and that there had been much interest in the chain.
The Peacocks business operates about 611 stores and 49 concessions across Wales, Northern Ireland, Scotland, and England and employs approximately 9,600.
The irony is that the majority of the 600 stores are trading "profitably" but it is the huge debt overhang from the management buyout in 2006 that has been the company's undoing. The company also saw an INCREASE in sales of 16% in the last year. It is expected that the head office staff will see the first redundancies while the administrator tries to slim down the business. At the end of the day the banks are beginning to call in their huge loans as they start cutting their exposures. Could this be the corporate credit crunch?
If you are an employee of Peacocks then please read this page on your rights as an employee of an insolvent company