Wyre Forest News
Peacocks in Kidderminster saved in buy out
4:23pm Wednesday 22nd February 2012
PEACOCKS clothing store in Kidderminster has been saved after the struggling chain was bought out of adminstration.
All seven jobs at the Worcester Street store are safe since Edinburgh Woollen Mill acquired it in a deal to take over 388 of the brand’s stores and concessions - leaving the remaining 224 to shut down immediately.
The deal has secured 6,000 UK jobs but will mean 3,100 redundancies. Edinburgh Woollen Mill has also bought Peacock’s headquarters in Cardiff but will be cutting 16 jobs there.
The future of the Kidderminster store, which has been part of the street scene for 14 years, became uncertain when the chain brought in administrators KPMG amid £750 million of debts last month.
Chris Laverty, joint administrator and restructuring partner at KPMG, said: “Today’s deal ensures the continued trading of a well-known name on the high street. While it is unfortunate that redundancies have been necessary, we are pleased that we have been able to preserve the majority of the business and jobs.
“Like many other retailers, Peacocks suffered from a decline in consumer spending due to the tough economic conditions and this, combined with a surplus of stores and unsustainable capital structure led to the business becoming financially unviable.
“However, a strong brand presence and loyal customer following meant that Peacocks attracted a great deal of interest from both trade and private equity bidders, leading to today’s successful sale.
“I would take this opportunity to thank the management team and staff for their continued assistance in very difficult circumstances; their support has been invaluable in securing today’s sale."
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