Peacocks on the brink of administration

Clothing chain Peacocks, which has several branches in the area, is reportedly on the brink of administration as talks with its lenders deteriorated.

A series of complex talks between Cardiff-based Peacocks and equity and debt holders have delivered no solutions, the Sunday Telegraph said, leaving the future of the company hanging in the balance.

Bon Marche, the 200-shop retailer which is part of the Peacocks Group, is understood to be close to being sold, but there is uncertainty around the remaining 550 Peacocks stores.

The company has stores across Essex including one in Harlow.

Peacocks, owned by hedge funds Och-Ziff and Perry Capital, has been boosted by the success of a collaboration with the singer-turned-fashion designer Pearl Lowe.

Like-for-like sales rose 17 per cent over the Christmas period and the company said it was benefiting from its ability to react quickly to fashion trends.

Independent advisers at KPMG were recently drafted in to prepare a review of the group’s finances.

The key issue at Peacocks is reportedly related to whether its banks, led by Barclays and Royal Bank of Scotland, were willing to take a loss on the debt they are owed.

A spokesman for Barclays said yesterday said: “At every stage Barclays has been willing to support the management in the restructuring of the business.”