Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Notices of intent filed for Peacock Group and Bonmarché

UPDATE: Notices of intent to appoint administrators have been filed for both Peacocks Group and Bonmarché, placing the clothing retailers into a 10-day moratorium until a solution to its difficulties is found.

Advisor KPMG is understood to be waiting in the wings as administrator if one is appointed.

Peacocks is on the brink of administration as its bank, The Royal Bank of Scotland, walked away from refinancing talks

The value fashion group, which is poised to offload its clothing chain Bonmarché to private equity firm Sun European Partners, had been in discussions with its bank RBS about a possible debt for equity swap.

However, it is understood RBS is unwilling to commit to a deal, putting the future of the retailer and its 9,000 employees in danger.

Peacocks has been grappling with £240m worth of high interest loans, although the group is profitable.

The 550-store retailer, chaired by retail veteran Allan Leighton, is looking at a range of restructuring options that could include shutting stores and administration. KPMG is understood to be waiting in the wings.

A spokesman for RBS, which is also a lender to HMV and Clintons, said: “Each company restructure is judged on its own merits, but clearly the difficult conditions that retailers face is an important factor. New investors willing to inject sufficient capital could not be found.”

Peacocks is owned by a consortium whose members include hedge funds OchZiff and Perry Capital.

According to the BBC, Peacocks has said nothing other than that debt talks are continuing.

The company’s latest results for the year to April 2010 showed the group’s stores made operating profits of £27m. This was, however, reduced to a pre-tax loss of £56m as a result of £77m in bank loans and overdrafts.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.