Goldman Sachs ‘in Peacocks talks’

Peacocks, which operates 550 stores, is in negotiations with its lenders and shareholders to reduce its £240m debt pile.

Goldman Sachs, one of the biggest lenders to the Cardiff-based retailer, is considering writing off some of the debt in return for a bigger stake that could see it become the majority shareholder.

Despite its value offering, it is understood that sales growth in the UK has slowed in recent months amid the financial gloom. However, the group is enjoying success overseas, particularly in Russia.

The group was left with huge borrowings when it was taken private by investors, including Goldman Sachs, Och-Ziff and Perry Capital, and its management in 2005.

It was put up for sale last year but the auction was scrapped when it failed to garner enough interest.

Peacocks tried to raise funds by selling Bonmarche, its chain for older women, but this also fell through when it could not agree a price with potential bidders.