Town centre clothes store saved

Peacocks in Rochdale will remain open after the chain was sold out of administration to The Edinburgh Woollen Mill Group.

The fashion retailer, that has a store in the Wheatsheaf Shopping Centre, called in the administrators in January.

The move means that 6,000 jobs across the UK will be safeguarded, but their will be 3,100 redundancies.

The retailer has 611 stores and 49 concessions across the Britain. 338 stores and 57 concessions will remain open.

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."

Philip Day, the Chairman and Chief Executive of the Edinburgh Woollen Mill Group, said: “I am pleased to announce that with immediate effect 338 stores, 57 concessions, three distribution centres and the head office operations belonging to the Peacocks group will come into the EWM Group of companies, saving some 6,000 jobs, including 250 at the Cardiff headquarters.

“We look forward to working with our new colleagues to rebuild the business in what is a very tough economic environment for High Street retailers in the UK.”

Barclays and Santander banks have agreed to help Edinburgh Woollen Mill Group with funding for the acquisitions.