Billionaire Philip Day’s retail empire that includes Peacocks and Jaeger is on the brink of collapse, with much more thab 21,000 work opportunities at danger.
Edinburgh Woollen Mill (EWM), which also owns Austin Reed and Jacques Vert, is poised to appoint administrators at FRP Advisory if it fails to locate a purchaser for some or all of the brands.
Mr Day’s chains, amassed in excess of the years and typically purchased from prior administrations, have much more than 1,000 branches concerning them.
The retailer has lodged a see of intent to appoint administrators with the Large Court, which is meant to protect against lenders these types of as suppliers or landlords from saying any income for 10 days right before a official appointment is made.
Main government Steve Simpson reported that while he hoped to secure the ideal future for the business, there would inevitably be sizeable occupation cuts and retail outlet closures.
Bosses wrote to staff on Friday early morning saying that the countrywide and regional lockdowns had hurt product sales really intensely.
On the other hand, it mostly blamed a spat with suppliers in Bangladesh for its plight immediately after credit score insurers pulled deal with and left the business exposed.
Credit insurance coverage shields suppliers against the danger of customers going bust concerning an order getting put and the payment getting made. When insurers quit or withdraw deal with, suppliers can demand from customers payment up entrance, placing tension on suppliers and their funds.