Billionaire Philip Day’s retail empire that includes Peacocks and Jaeger is on the brink of collapse, with extra thab 21,000 positions 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 customer for some or all of the brands.
Mr Day’s chains, amassed around the years and often acquired from prior administrations, have extra than one,000 branches among them.
The retailer has lodged a notice of intent to appoint directors with the High Court, which is meant to prevent collectors this sort of as suppliers or landlords from boasting any cash for 10 days prior to a formal appointment is built.
Main govt Steve Simpson said that while he hoped to safe the best long term for the business, there would inevitably be substantial work cuts and retailer closures.
Bosses wrote to staff members on Friday morning saying that the countrywide and nearby lockdowns had hurt revenue pretty seriously.
Nevertheless, it mostly blamed a spat with suppliers in Bangladesh for its plight just after credit rating insurers pulled cover and left the business exposed.
Credit history coverage safeguards suppliers against the possibility of shoppers likely bust among an purchase getting positioned and the payment getting built. When insurers halt or withdraw cover, suppliers can need payment up front, placing stress on vendors and their finances.