Peacocks jobs on the line amid Covid crisis
AS many as 24,000 jobs are on the line as a high-street giant fights for survival.
The Edinburgh Woollen Mill Group, which owns a string of high-street brands, has filed a notice to appoint administrators.
Big names Jaeger and Peacocks, which has its head offices in Cardiff, as well as the Edinburgh Woollen Mill shops themselves, will continue trading, but the group’s chief executive, Steve Simpson, warned the “extremely difficult” past seven months would “inevitably” result in job cuts and closures.
For now, EWM Group’s stores will continue trading while insolvency specialists spend 10 days preparing an urgent review ahead of further action, according to Sky News.
Mr Simpson said normal trading will be “impossible” in the face of a second coronavirus outbreak.
It comes amid allegations that the company cancelled millions of pounds’ worth of orders with clothing factories in Bangladesh at the start of the crisis. EWM denies the allegations, but says they have damaged the business.
“Like every retailer, we have found the past seven months extremely difficult,” he said.
“This situation has grown worse in recent weeks as we have had to deal with a series of false rumours about our payments and trading which have impacted our credit insurance.
“Traditionally, the group has always traded with strong cash reserves and a conservative balance sheet but these stories, the reduction in credit insurance – against the backdrop of the lockdown – and now this second wave of Covid-19 and all the local lockdowns, have made normal trading impossible.
“As directors, we have a duty to the business, our staff, our customers and our creditors to find the very best solution in this brutal environment.
“So we have applied to court today for a short breathing space to assess our options before moving to appoint administrators.
“Through this process, I hope and believe we will be able to secure the best future for our businesses, but there will inevitably be significant cuts and closures as we work our way through this.”
An FRP spokesman added: “Our team is working with the directors of a number of the Edinburgh Woollen Mill Group subsidiaries to explore all options for the future of its retail brands Edinburgh Woollen Mill, Jaeger, Ponden Home, and Peacocks.”
The Edinburgh Woollen Mill Group, which is based in Langholm, Scotland, is owned by high-street billionaire Philip Day – the businessman who rivalled Mike Ashley in his acquisition of Jack Wills last year.
His empire, which also owns Jacques Vert, Jaeger, Eastex, Austin Reed and Windsmoor, acquired Peacocks in 2012, saving 388 stores, after the chain collapsed into administration.