21,000 jobs at risk as Peacocks and Jaeger owner faces collapse Business

Billionaire Philip Day’s retail empire, which includes Peacocks and Jaeger, is on the brink of collapse, with more than 21,000 jobs at risk.

Edinburgh Woolen Mill (EWM), which also owns Austin Reed and Jacques Vert, is set to appoint directors to FRP Advisory if it cannot find a buyer for some or all of the brands.

Mr. Day’s chains, accumulated over the years and often purchased from previous administrations, have over 1,000 branches between them.

The retailer has filed a notice of intention to appoint directors with the High Court, which seeks to prevent creditors such as suppliers or owners from claiming money for 10 days before a formal appointment is made .

Managing director Steve Simpson said that while he hopes to secure the best future for the company, there will inevitably be job cuts and major store closings.

Bosses wrote to staff on Friday morning to say that national and local lockdowns had severely affected sales.

However, he mostly blamed an argument with suppliers in Bangladesh for its predicament after credit insurers took cover and left the company exposed.

Credit insurance protects suppliers against the risk of customer default between order and payment. When insurers stop or withdraw coverage, providers can demand an upfront payment, putting pressure on retailers and their finances.

More about this article: Read More
This notice was published: 2020-10-09 13:40:24