Corporate: Peacocks rescued from administration after sale 22 February 2012

Low-cost fashion retailer Peacocks has been bought out of administration by Edinburgh Woollen Mill, safeguarding 6000 jobs.

KPMG’s joint administrators have confirmed the sale which also resulted in some 3100 redundancies and the closure of 224 stores.

Edinburgh Woollen Mill – which is regarded as one of the UK’s largest high street chains – has snapped up the Peacocks brand, 388 stores and concessions, as well as the business’ headquarters in Wales.

Joint administrator Chris Laverty 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.”

The deal will also see some 16 redundancies at the Cardiff headquarters.

Last month, Laverty revealed the administrators had “over 100 conversations” with interested parties in the first 48 hours of the company falling into administration.

Peacocks was one of the biggest high street casualties of a subdued retail environment which also saw fellow big names La Senza, Blacks Leisure and Barratts collapse into administration in the past two months.

Last year, Edinburgh Woollen Mill swooped to preserve some 400 jobs after it bought 33 Jane Norman stores.

The Langholm-based company was founded in 1947.

By Andy Pearce