The struggling clothing retailer Peacocks has been purchased by Edinburgh Woollen Mill, taking the firm out of administration. It will now continue to operate throughout the UK thanks to the deal.
The deal with EWM has put fears of redundancy aside for many of the staff, though more than 3,000 people were made redundant straight away, with 224 stores closing immediately.
It will preserve 6,000 positions throughout the country, including 250 at the company’s headquarters in the Welsh capital of Cardiff.
It is thought possible that a new head office could be created in Langholm, where EWM themselves are based, though there has been no mention of this and plans for this restructure could be a long way off.
The sale was announced last week by administrators KPMG, who admitted that the loss of jobs was “unfortunate”. However, spokesman Joff Pope was eager to state that the majority of positions, as well as the high street name, had been preserved, all of which were previously at risk.
Mr Pope went on to say that other retailers will be all too familiar with the problems that Peacocks has run into, saying:
“…unsustainable capital structure, led to the business becoming financially unviable.”
Many firms are recognising these issues before serious cracks appear, electing to seek alternative finance through initiatives such as invoice factoring.
Peacocks, a popular brand with consumers in the downturn, entered administration in early 2012, with the firm failing to restructure its lending terms with creditors and no alternative funding methods being available.