Billionaire Philip Day’s retail empire that includes Peacocks and Jaeger is on the brink of collapse, with much more thab 21,000 positions at hazard.
Edinburgh Woollen Mill (EWM), which also owns Austin Reed and Jacques Vert, is poised to appoint directors at FRP Advisory if it fails to locate a purchaser for some or all of the brand names.
Mr Day’s chains, amassed about the years and generally acquired from preceding administrations, have much more than one,000 branches in between them.
The retailer has lodged a notice of intent to appoint directors with the Substantial Court, which is intended to prevent lenders these as suppliers or landlords from proclaiming any revenue for ten days in advance of a formal appointment is created.
Main government Steve Simpson mentioned that although he hoped to protected the very best foreseeable future for the company, there would inevitably be considerable task cuts and store closures.
Bosses wrote to workers on Friday morning declaring that the nationwide and area lockdowns had harm revenue really intensely.
On the other hand, it mostly blamed a spat with suppliers in Bangladesh for its plight after credit insurers pulled deal with and left the business exposed.
Credit rating insurance plan shields suppliers against the hazard of customers heading bust in between an order staying put and the payment staying created. When insurers quit or withdraw deal with, suppliers can demand payment up front, putting pressure on shops and their funds.
