Billionaire Philip Day’s retail empire that includes Peacocks and Jaeger is on the brink of collapse, with extra thab 21,000 jobs at hazard.
Edinburgh Woollen Mill (EWM), which also owns Austin Reed and Jacques Vert, is poised to appoint administrators at FRP Advisory if it fails to obtain a purchaser for some or all of the brands.
Mr Day’s chains, amassed above the years and generally acquired from former administrations, have extra than 1,000 branches concerning them.
The retailer has lodged a observe of intent to appoint administrators with the Superior Courtroom, which is meant to avert lenders these types of as suppliers or landlords from boasting any revenue for ten times just before a official appointment is made.
Chief government Steve Simpson said that whilst he hoped to protected the most effective future for the business, there would inevitably be sizeable position cuts and retail outlet closures.
Bosses wrote to team on Friday morning indicating that the national and nearby lockdowns experienced hurt gross sales incredibly closely.
Nevertheless, it mostly blamed a spat with suppliers in Bangladesh for its plight after credit insurers pulled include and still left the business exposed.
Credit insurance coverage shields suppliers towards the hazard of buyers going bust concerning an purchase currently being put and the payment currently being made. When insurers end or withdraw include, suppliers can need payment up entrance, placing tension on vendors and their funds.