Billionaire Philip Day’s retail empire that includes Peacocks and Jaeger is on the brink of collapse, with more thab 21,000 jobs at possibility.
Edinburgh Woollen Mill (EWM), which also owns Austin Reed and Jacques Vert, is poised to appoint administrators at FRP Advisory if it fails to find a consumer for some or all of the brand names.
Mr Day’s chains, amassed around the years and typically bought from earlier administrations, have more than one,000 branches involving them.
The retailer has lodged a notice of intent to appoint administrators with the Superior Court docket, which is intended to stop creditors these types of as suppliers or landlords from proclaiming any money for 10 times before a formal appointment is produced.
Chief govt Steve Simpson claimed that while he hoped to safe the very best long term for the business enterprise, there would inevitably be sizeable work cuts and store closures.
Bosses wrote to personnel on Friday morning indicating that the countrywide and community lockdowns experienced harm gross sales incredibly greatly.
Even so, it mostly blamed a spat with suppliers in Bangladesh for its plight just after credit history insurers pulled go over and left the business exposed.
Credit history insurance coverage protects suppliers from the possibility of buyers heading bust involving an get becoming placed and the payment becoming produced. When insurers cease or withdraw go over, suppliers can need payment up entrance, putting stress on retailers and their funds.