Peacocks, the discount fashion retailer, has fallen into administration after talks of a rescue management buyout broke down putting more than 10,000 jobs at risk.
KPMG said it had been appointed administrator to Peacocks, which owns 611 stores and 49 concessions across the UK, and will now seek to find a buyer for the company as stores continues to trade.
The firm said Peacocks’ 394-store chain Bonmarche will not go into administration and is looking for a buyer.
Private equity group Sun European Partners is already the frontrunner to buy the chain and is also understood to be looking at buying parts of Peacocks.
Bonmarche filed a notice of intention to appoint administrators on Monday but this allows 10 working days to find a buyer.
Chris Laverty, joint administrator and restructuring partner at KPMG, said: “Like many retailers Peacocks has suffered from tough economic conditions, which have seen its customers reduce their spending on the high street.”