Billionaire Philip Day’s retail empire that includes Peacocks and Jaeger is on the brink of collapse, with a lot more thab 21,000 positions at threat.
Edinburgh Woollen Mill (EWM), which also owns Austin Reed and Jacques Vert, is poised to appoint directors at FRP Advisory if it fails to obtain a consumer for some or all of the brand names.
Mr Day’s chains, amassed around the years and generally acquired from prior administrations, have a lot more than one,000 branches amongst them.
The retailer has lodged a detect of intent to appoint directors with the Superior Courtroom, which is meant to stop collectors these kinds of as suppliers or landlords from proclaiming any funds for 10 times before a formal appointment is designed.
Chief executive Steve Simpson said that whilst he hoped to protected the ideal long term for the small business, there would inevitably be sizeable job cuts and retailer closures.
Bosses wrote to workers on Friday morning saying that the nationwide and nearby lockdowns had harm sales very intensely.
Having said that, it mostly blamed a spat with suppliers in Bangladesh for its plight soon after credit rating insurers pulled address and remaining the business exposed.
Credit history insurance policy protects suppliers in opposition to the threat of prospects likely bust amongst an get remaining put and the payment remaining designed. When insurers end or withdraw address, suppliers can demand payment up front, putting force on suppliers and their finances.