21,000 jobs in danger as Peacocks and Jaeger owner faces collapse

Billionaire Philip Day’s retail empire that includes Peacocks and Jaeger is on the brink of collapse, with additional thab 21,000 careers at possibility. 

Edinburgh Woollen Mill (EWM), which also owns Austin Reed and Jacques Vert, is poised to appoint directors at FRP Advisory if it fails to find a purchaser for some or all of the manufacturers. 

Mr Day’s chains, amassed about the years and frequently purchased from preceding administrations, have additional than one,000 branches in between them. 

The retailer has lodged a detect of intent to appoint directors with the High Courtroom, which is intended to stop lenders these types of as suppliers or landlords from boasting any funds for ten days just before a formal appointment is made. 

Main government Steve Simpson reported that whilst he hoped to safe the finest foreseeable future for the enterprise, there would inevitably be considerable job cuts and keep closures. 

Bosses wrote to staff on Friday early morning stating that the nationwide and nearby lockdowns had hurt profits pretty seriously.

On the other hand, it mostly blamed a spat with suppliers in Bangladesh for its plight soon after credit rating insurers pulled deal with and left the business exposed.  

Credit coverage safeguards suppliers towards the possibility of consumers heading bust in between an purchase becoming put and the payment becoming made. When insurers cease or withdraw deal with, suppliers can desire payment up entrance, placing force on retailers and their funds.