Strong interest in troubled Peacocks chain

editorial image

The administrators to troubled clothing chain Peacocks have claimed there has been a “huge interest” from new potential buyers.

The news will come as some comfort to the branch’s 12 employees and customers of Peacocks’ Leven Shorehead store.

The company has already shed 250 positions at its head office in Cardiff following its move into administration last month.

Chris Laverty, joint administrator and restructuring partner at KPMG, said: “We have received huge interest from potential acquirers of Peacocks, following our appointment last week.

“We had over 100 conversations with interested parties looking at either acquiring the whole business or parts of the business in the first 48 hours alone.”

The Leven store has been a fixture in the town for 10 years and any shut-down will be seen as a blow to any future regeneration hopes of the main shopping area.

KPMG was called in as an administrator for the company after the chain hit difficulty in restructuring its debts of around £240 million.

David McCorquodale, corporate finance partner at KPMG, told the Mail this week: “While the capital structure was not sustainable, the underlying business has a loyal customer base evidenced by strong sales levels in store since our appointment.

“We are in discussions with both trade and financial investors considering the acquisition opportunity.

“What is clear is the Peacocks brand and extensive geographic footprint remain attractive.

“Therefore, we are hopeful of finding a buyer for all or a substantial portion of the business on a going concern basis.

Mr McCorquodale added: “We will move quickly to protect value and have set up data room facilities for bidders to review Peacocks’ financials, with initial offers required in short order.”

Posters have recently been placed on the door of the Leven store to explain current policy on the return of goods bought before and after the move into administration while a petition has also been started to save the store.

It was recently announced that fashion clothing chain Bonmarche, which is part of the Peacocks group, had been bought by private equity group, Sun European Partners.

The joint administrators are trading the company during the sales process and all stores are continuing to operate and trade.