Peacocks and Jaeger owner files for administration, putting 24,000 jobs at risk
Around 24,000 jobs are on the line as Edinburgh Woollen Mill (EMW) group, the owner of retailers Peacocks and Jaeger, has filed a notice to appoint administrators.
Bosses wrote to employees this morning warning them that lockdowns across the country had battered sales, forcing the company to review the future of its business.
Steve Simpson, chief executive of EWM said the past seven months have been “extremely difficult” as he warned normal trading will be “impossible” in the wake of a second coronavirus outbreak.
The announcement comes after EWM this week faced accusations of owing Bangladeshi manufacturers £27m in unpaid bills.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA), a trade organisation which represents some of EMW’s Bangladesh-based suppliers, claimed the firm owed unpaid debts to businesses which are members of the organisation, Retail Gazette reported.
EWM chair John Herring is understood to have said in a letter that advanced negotiations with a prominent US investor overtaking a stake in Peacocks had been threatened by the allegations.
Herring told BGMEA chair Rubana Huq the claims were “categorically false”, adding that the “old figures are completely baseless and without any merit”.
Commenting on the allegations today, Simpson said: “This situation has grown worse in recent weeks as we have had to deal with a series of false rumours about our payments and trading which have impacted our credit insurance.”
He added: “Traditionally, the group has always traded with strong cash reserves and a conservative balance sheet but these stories, the reduction in credit insurance – against the backdrop of the lockdown – and now this second wave of Covid-19 and all the local lockdowns, have made normal trading impossible.”
The Peacocks boss said the company had today applied to court “for a short breathing space to assess our options before moving to appoint administrators.”
Simpson added: “I would like to thank all our staff for their amazing efforts during this time and also our customers who have remained so loyal and committed to our brands.”
“Through this process I hope and believe we will be able to secure the best future for our businesses, but there will inevitably be significant cuts and closures as we work our way through this.”
The move by EWM to file a notice for administration today will see insolvency specialists at FRP spend 10 days carrying out an urgent review ahead of further action.
All stores will continue trading and further details will be announced in due course, the company said.
An FRP spokesman said: “Our team is working with the directors of a number of the Edinburgh Woollen Mill Group subsidiaries to explore all options for the future of its retail brands Edinburgh Woollen Mill, Jaeger, Ponden Home, and Peacocks.”
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